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CC - Item 6D - Consolidated Disposal Contract
E Ai E S F0~ 9 O Q~Q ORPORAT O j9g9 f r F f ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: OLIVER CHI, CITY MANAGER G DATE: JANUARY 22, 2008 SUBJECT: CONSOLIDATED DISPOSAL CONTRACT EVERGREEN CLAUSE SUMMARY On December 11, 2007, the City Council approved Consolidated Disposal Services' request for a rate increase effective January 1, 2008. While discussing this item, the Council also reviewed other terms in the City's contract with Consolidated, including service levels and the evergreen provision included in the agreement. After reviewing these issues, the Council asked staff to bring back more information regarding the City's trash collection contract at a later date. Staff Recommendation Staff recommends that the City Council provide staff with further direction regarding the City's refuse collection contract and collection service levels. DISCUSSION The City's contract with Consolidated includes several service level provisions for trash collection services. Some of the service levels include collection frequencies (day/time of collection, number of cans a house can put out), collection programs (recycling requirements, bulk item collection program, commingled recycling program), and customer service requirements (billing functions, call centers, senior discount programs). The original contract with Consolidated was first approved in 1991 for a five-year term. Since then, the contract has been amended three times to change terms and service levels. On June 5, 1996, the City Council approved the second amendment with Consolidated. Terms changed in this amendment included changing the annual rate increase provision, adding an "evergreen clause" to the contract, adding indemnification provisions from state mandated recycling requirements, and automating the residential collection program, among other changes (Attachment 1). What is an Evergreen Clause? APPROVED FOR CITY COUNCIL AGENDA: 0 City Council Meeting January 22, 2008 Page 2 of 3 By definition, an evergreen clause is a contractual provision that allows a contract to be automatically renewed unless given notice by one of the contracting parties. This clause can be beneficial for both sides of a contract including locking in prices for an extended period of time, guaranteeing a revenue stream, or ensuring continuity in services, among others. Although evergreen clauses allow a contract to continue indefinitely, they can still be renegotiated at any time, just like a contract with a definite term. This can benefit parties if a new technology is released that will make existing technology obsolete. For example, a business enters into an evergreen contract with a consulting firm to provide computers. Should a new, more advanced computer be developed, the business can still negotiate with the consulting firm to obtain the newest computer system. The evergreen clause in the City's agreement with Consolidated grants a one-year extension each year so that the term of the agreement remains constant at five years. Per Section "O" in the second amendment, "should either party desire that said automatic one-year renewal and extension term be terminated, such party may give the other written notice of such not later than May 1 of any year of the Agreement. Such notice will terminate the automatic one-year renewal and extension provision, and the Agreement shall remain in effect for the balance of the term outstanding." This clause is valid subject to all other conditions contained in Section "P" of the original agreement between the City and Consolidated. Over the past few months, staff has met with representatives from Consolidated to discuss the City's trash collection contract. In December, staff informed Consolidated that the City Council was interested in further discussing the evergreen provision and further evaluating the City's trash collection program. Should the City Council desire, staff will prepare a letter to Consolidated explaining the City's intention to end the evergreen provision and give notice to bid services in five years. FINANCIAL REVIEW Not applicable ENVIRONMENTAL REVIEW Not applicable LEGAL REVIEW This staff report has been reviewed and approved by the City Attorney. r City Council Meeting January 22, 2008 Page 3 of 3 Prepared by:: Chris Marcarello Administrative Services Officer S City Manager Attachments: (1) City Council Staff Report and Minutes, December 11, 2007 (2) City Council Staff Report and Minutes, June 18, 1996 ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: OLI ER C. CHI, CITY MANAGER &(;-G" L" DATE: DECEMBER 11, 2007 SUBJECT: CONSOLIDATED DISPOSAL APPLICATION FOR RATE INCREASE SUMMARY On Tuesday, December 4, 2007, Consolidated Disposal Services (Consolidated) submitted a letter requesting a!rate increase for 2007-2008 (Attachment A). The proposed rate increase of 5.62% for residential customers and 5.79% for commercial customers are scheduled to take effect on January 1, 2008. In addition to details regarding the proposed rate increase, Consolidated also forwarded a copy of the Rosemead City Council Agenda from November 14, 2006. That agenda indicates that the City Council granted the City Manager the authority to implement any annual rate increase without holding a public hearing provided that the rate increase does not exceed the formula in the Consolidated contract agreement. I For reference, staff went back and pulled the minutes for the meeting where the action was taken (Attachment B), and it does appear that the City Council granted the City Manager such authority. This means that unless there is any objection from the City Council, the staff will move forward and authorize the rate increase proposed by Consolidated. I Staff Recommendation Staff recommends that the City Council receive and file this report. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. i Attachment A: Consolidated Disposal Letter Of Request For Rate Increase Attachment B: Minutes From October 24, 2006 City Council Meeting APPROVED FOR CITY COUNCIL AGENDA: CONSOLIDATED DISPOSAL SERVICE A Subsidiary of ~'P' REPUBLIC SERVICES, INC. December 3, 2007 Mr. Oliver Chi City Manager City of Rosemead 8838 East Valley Blvd. Rosemead, CA 91770 AITACBMM A 2495 E. 68'" Street Long Beach, CA 90805 Facsimile (562) 5314710 RE: Application for Adjustment of Waste Collection and Disposal Rates for year 2007-2008 Dear Mr. Chi: i Consolidated Disposal Service hereby submits its annual request for adjustment of the waste collection and disposal rates for the City of Rosemead. This application is based on the franchise agreement's formula for rate adjustments based on CPI and disposal fee increases. As per our contract with the City of Rosemead and Consolidated Disposal Service, CDS agreed last year to change the yearly rate adjustment effective date from August 1" to January 151, due to the fact that in 2004, the County Sanitation District changed their yearly gate fee increase date from July I" to January I". Consolidated Disposal Service requests the following rate adjustment with a new effective date of January 1,12008. The Consumer Price Index reported by the Department of Labor Bureau of Statistics for the Los Angeles-Anaheim-Riverside area for period September 2006 to September 2007, has increased by 2.76%. Consolidated Disposal Service, LLC. is not requesting a fuel adjustment at this time. The Los Angeles County Sanitation District increased their gate fee on January 1, 2007 to $26.20 per ton and will increase to $29.42 on January 1, 2008. The Commerce Waste to Energy Facility increased their gate fee from $53.00 ton to $61.00 per ton. We therefore, submit the following rate adjustment for your review and approval. I i Rate Adiustment Formula Residential The rate adjustments fdrmula to be applied is as follows: J 2 Rate Adiustment Formula Commercial The rate adjustments formula to be applied is as follows: Consolidated Disposal Service, LLC. respectfully requests that the City Manager approves the rate adjustment per City Council direction at the City Council meeting on November 14, 2006, Item A under Public Hearings. Per the City Managers approval this rate adjustment will take effect January 1, 2008. Thank you for your consideration in this matter. Should you have any question regarding this application or any other matter, please do not hesitate to call me at (562) 259-2826. Sincerely, reg oN rdbak Government Relations Enclosures - Work Sheet, New Rate Sheet & Copy of H /14/2006 agenda (3). 2 Consolidated Disposal Service requests that the rate adjustment of 5.62% as computed above be applied uniformly to all residential customers and 5.79% to all commercial/industrial customers in the City of Rosemead. Please refer to the attached page for a computation of rates. 2 0 0 c N m G) ° a z m 2 ~ N A m a W O F» m m W fT ~ D1 O O A n O N -V N a v SN m n w 3 'm of m S N m m ~ 0 m m N r m m, N m o m O O O e o N O O O V N 0 0 0 _ J W 0 0 0 0 0 0 V W O O a o of ~ W rn ~ ~ N W O e e e • =0 0 m n N O.AA :c C) c r G7 3 a 3 G) Zt O N N ~ a sN is O " N C < 0 m,~.o a m p Cm - cn m m m g m CD m;.o 3 o . N C ~aO . O N N . O fA bi ~ ~O%• N~(~ m 1 O C:Y O N o w o a N w m O o co J _ N O N Ut N O N W O N O l0 O N O 41 O O n n O O -a bi 3 0 3 f° m m m n m 0 m ~ v m N N A ~p o N O ~ o e N N W V CO m V d 0 0 0 V W O O 0 0 N W V t0 W m w m o e o O 0 • New Rates Residential Rates: Category Current Rate New Rate Single Family Dwelling - Residential Curbside one 100 Gal Cart) $ 16.25 $ 17.16 Multiple Family Dwelling-Detached Units On A Single Lot: First Unit $ 16.25 $ 17.16 Each Additional Unit $ 13.13 $ 13.87 Multiple Family Units - Attached Units (Apartments and Condos) And Mobilhome Parks: First Unit $ 16.25 $ 17.16 Each Additional Unit $ 10.68 $ 11.28 Special Qualified Senior Citizen Hardship Rate / For Residential Curbside Service $ 10.81 $ 11.42 Special Qualified Handicapped Citizen / Backyard Collection Rates For Single Family Residences: $ 16.25 $ 17.16 Additional 100 Gallon Cart $ 2.28 $ 2.41 Special One-Time Pick-Up Cost For Pick-Up And Disposal Of Appliances, Furniture And Bulk Items $ 16.94 $ 17,89 Residential - Special One-Time Drop-Oft And Collection of A 3-Cubic Yard Bin Pick U / Delivery Charge $ 58.61 $ 61.90 Each Dump $ 23.65 $ 24.98 Total $ 82.26 $ .86.88 Residential - Special One-Time Drop-OH And Collection of A 10 to 40 Cubic Yard "Roll-Off" Container $ 458.62 $ 484.37 Overweight 7 Ton Limit $ 56.14 $ 59.29 Dail Rental After Seven Days Without A Dump $ 15.99 $ 16.89 Dead Run $ 79.96 $ 84.45 Commercial Rates 3 Cubic Yard Bins CURRENT RATE Without Forklift Forklift 1 Da P/U 107.93 118.71 2 Da P/U 163.81 180.16 3 Da P/U 222.25 244.45 4 Da P/U 281.09 309.20 5 Da P/U 347.29 382.02 6 Da P/U 397.81 437.63 NEW RATE Without Forklift Forklift 1 Da P/U 114.18 125.58 2 Da P/U 173.30 190.59 3 Da P/U 235.12 258.60 4 Da P/U 297.37 327.10 5 Da P/U 367.40 404.14 6 Da P/U 420.84 462.97 1 112 Cubic Yard Bins CURRENT RATE Witho Forkliftut Forklift 1 Da P/U 72.62 79.88 NEW RATE I I Without Forklift Forklift 1 Da P/U 76.82 84.51 Category Current Rate Commercial - One-Time Drop-Off And Collection Of A 3-Cubic Yard Bin Pick U / Delivery Charge $ 72.44 Each Dump $ 37.81 M Total $ 110.25 Commercial - Special One-Time Drop-OH And Collection of A 10 to 40 Cubic Yard "Roll-Off' Container $ 422.31 446.76 Overwei ht 7 Ton Limit $ 53.95 Dail Rental After Seven Da Without A Dump $ 16.15 17.09 Dead Run $ 80.73 85.40 Commercial - Special One-Time Drop-OH And Collection Of A 30 Cubic Yard Compactor Container $ 559.41 591.80 Overweight 9 Ton Limit $ 53.95 57.07 Dail Rental After Seven Days Without A Dump $ 16.15 17.09 Dead Run $ 80.73 85.40 Commercial - Special Barrel Service for Qualified Commercial, Limited Use Customers. Max 2-35 gallon cans 1 time per week $ 73.48 77.73 • • ROSEMEAD CITY COUNCIL AGENDA November 14, 2006 • CALL TO ORDER - 8:00 PM • PLEDGE OF ALLEGIANCE - Councilmember Clark • INVOCATION - Pastor Ken Fong, Evergreen Baptist Church • ROLL CALL - Councilmembers Clark, Imperial, Tran, Mayor Pro Tern Nu6ez, Mayor Taylor 1. PUBLIC COMMENT FROM THE AUDIENCE Please refer to public comment guidelines on the first page of this document. 2. PRESENTATIONS A. League of California Cities - Recognition of efforts during the "No on Proposition 90" campaign. 3. PUBLIC HEARINGS A. Consideration of Consolidated Disposal Services Rate Increase for Services during Calendar Year 2007 At the October 24th Council Meeting, a public hearing was scheduled for November 10 to consider consolidated Disposal Services request for an increase in their residential rates f of 6.61 % and commercial rates of 7.64% to be effective January 1, 2007. These rates r) include a, one time only, additional increase to cover the extraordinary increase in gas prices over the past year. At that same meeting the Council approved amendment No. 4 which changed the annual adjustment date from August 1St to January 1St and granted the City Manager authority to implement the annual rate increase, provided it does not exceed the formula in the agreement. Recommendation: That the City Council, after opening the public hearing and taking comments, close the public hearing and approve the rate increase, provided it does not exceed the formula in the agreement. B. Adoption of a New User Fee Schedule On June 13, 2006, the City Council authorized staff to contract with MuniFinancial for the purpose of examining and updating the City's existing user fee schedule. The intent of the exercise was to examine the true cost of providing certain municipal services and has resulted in the creation of an updated user fee schedule for the City Clerk's Office, the Community Development Department, the Engineering Department, and the Finance Department. MuniFinancial has since completed their study and have provided an updated user fee schedule for City Council consideration. The new schedule was created only after gaining an understanding of the fully burdened cost for city personnel involved in providing certain services. By taking the total salary and benefit costs for employees in each department Page 2 of 5 ~J 0 ATTACBMM B MINUTES OF THE REGULAR MEETING ROSEMEAD CITY COUNCIL October 24, 2006 The regular meeting of the Rosemead City Council was called to order by Mayor Taylor at 8:00 p.m. in the Council Chambers of the City Hall, 8838 E. Valley Boulevard, Rosemead, California. The Pledge to the Flag was led by Mayor Taylor. The Invocation was delivered by Pastor Daniel Kwok from Branches Christian Ministries. ROLL CALL OF OFFICERS: Present: Councilmembers Clark, Imperial, Tran, Mayor Pro Tem Nunez and Mayor Taylor Absent: None PUBLIC COMMENT FROM THE AUDIENCE Juan Nunez, residing at 2702 Del Mar Ave, inquired if there is an ordinance to keep kids from harassing people on sidewalks in the evening. He indicated there is a problem in his neighborhood between 2634 and 2714 Del Mar. Mayor Taylor asked Mr. Nunez to file a complaint and turn in a log to the sheriffs department so the monitoring process can begin. Jim Clouet, residing at 3719 Ivar Ave, spoke about the successful International Fall Festival and extended his appreciation to the City for hosting the event. Desiree Lee, Rosemead Library Manager, spoke about the "FESTIVAL OF AUTHORS" event on Saturday November 41hat the library. There will be two keynote speakers: Denise Hamilton, a crime novel writer and Dr. Lucy Ching from mainland China, together with more than 40 authors at the Mission Inn from 11 to 2 p.m. Ms. Lee invited the Council and public to attend. Fred Herrera, residing at 3879 Delta Ave., commended the City's Vietnam War Memorial and asked the Council to consider adding the names of resident soldier casualties from other wars. Mayor Taylor agreed with the idea and indicated staff has already been looking into it. CCMIN: 10-24-06 Page 1 of 10 • Ken Pike, residing at 9220 Steele St., requested an ordinance be passed to allow the conduct of internet business from R-1 zoned homes. He referenced an article from the San Gabriel Valley Tribune stating that % of home based businesses are conducted via the intemet. Mr. Pike advocated that Rosemead should change with the times, as neighboring cities have. In addition, he also requested the bus stop be relocated to the East of Hart Street (at the original location) as this will provide additional parking for his customers. Mayor Taylor stated staff will look into the bus stop issue. 2. CONSENT CALENDAR The following items were put forth before the City Council (H and L were pulled for discussion purposes): A. Resolution No. 2006-29 Claims and Demands Recommendation: Adopt Resolution No. 2006-29, for payment of City expenditures in the amount of $911,872.94 for demands 54798 through 54996. B. Minutes September 26, 2006 - Regular Meeting C. Resolution No. 2006-30 - A Resolution of the City Council of the City of Rosemead, California, Calling and Giving Notice of the Holding of a General Municipal Election to be held on Tuesday, March 6, 2007, for the Election of Certain Officers as required by the provisions of the State of California relating to General Law Cities. This resolution calls for an election to be held on March 6, 2007, and makes provisions for the conduct of the election in accordance with the California Elections Code. Recommendation: Adopt Resolution No. 2006-30. D. Resolution No. 2006-31 - A Resolution of the City Council of the City of Rosemead, California, requesting the Board of Supervisors of the County of Los Angeles to render specked services to the City relating to the conduct of a General Municipal Election to be held on Tuesday, March 6, 2007. CCMIN: 10-24-06 Page 2 of 10 • • This resolution calls for an election to be held on March 6, 2007, and makes provisions for the conduct of the election in accordance with the California Election Code. Recommendation: Adopt Resolution No. 2006-31. E. Release of Bond - Parcel Map 60159 - 4623 Earle Avenue A Faithful Performance Bond and a Labor and Material Bond were required to guarantee construction of public improvements for Parcel Map 60159. In lieu of bonds, a Cash Deposit was issued to the City in amount of $10,650. Recommendation: That the City Council accept the public improvements and refund the Cash Deposit including interest. F. Approval of Tract Map No. 63143 - 4433 Walnut Grove Avenue Tract Map No. 63143 is being submitted for consideration and approval along with an Undertaking Agreement to guarantee construction of public improvements subsequent to the recordation of the tract map. Recommendation:- That the City Council approve Tract Map No.. 63143 and the Undertaking Agreement, and direct the City Clerk to arrange for the recordation of the map. G. Resolution No. 2006-32: Supporting Propositions 1A-1E In May 2006, the California State Legislature placed Proposition 1A - 1E on the statewide November 2006 ballot for voter consideration. Combined, these measures embody and represent a $37.3 billion package of fiscal bond measures to provide funding for housing, transportation, levee/flood control projects, and educational facilities. Proposition 1A will close a loophole and ensure that gas tax revenue from Proposition 42, passed by voters in 2002, is only spent on transportation improvement projects, as originally intended. Proposition 1B will provide up to $20 billion on various transportation projects to rebuild California, of which $1 billion will go to cities and $1 billion to counties for local streets and roads improvement projects. CCNM: 10-24-06 Page 3 of 10 • • Proposition 1C will provide $2.8 billion for housing projects, including $1.35 billion that helps cities address housing-related infrastructure issues, consisting of $850 million in grants for development of public infrastructure projects that facilitate or support infill housing construction, $200 million for parks, and $300 million for development near public transportation. Proposition 1D will improve California's weakening school system by providing $10 billion for performing school building repairs and providing innovative learning facilities for Californian students, including seismic retrofitting and classroom repairs. Proposition 1E will provide $4 billion for critical river levee repair and construction, as well as flood control projects and the updating and repair of old water mains and sewage systems. Recommendation: That the City Council adopt Resolution No. 2006-32 Supporting the approval of Propositions 1A -1 E. 1. League Legislative Briefing The League Legislative Briefing will take place on November 15 in Sacramento and on November 16 in Anaheim. Tentative session topics will include: Perspectives on the Results of Other Ballot Measures, the Governor's Race and Mood of the Voters; The Fate of Proposition 90, Employee Relations and Workers Compensation; Legislation Affecting Redevelopment, Flood Control, Environmental Issues, Housing and Land Use. Recommendation: That the City Council authorize the attendance for any Councilmember, the City Manager and staff designee. J. Authorization to Attend 2007 City Manager's Department Meeting The League of California Cities 2007 City Manager's Department Meeting is scheduled to take place from February 7 - 9, 2007 in San Francisco, California. Meeting sessions will include: Politicization of Local Government; Employment Contracts and Separation Agreements; CalPers; How to Cope with Rising Health Care Costs; GASB 45; and Building Public Trust in Uncertain Times. Recommendation: That the City Council authorize the attendance of the City Manager and staff designee. OWN: 10-24-06 Page 4 of 10 K AB 1234 Meeting Reports AB 1234 requires that City Council members and staff provide a brief report on meetings attended at City expense at the next regular City Council meeting. The City Clerk has received a written report filed by Councilman Imperial, Councilman Tran, and staff. Recommendation: That the City Council receive and file said reports. A MOTION WAS MADE BY COUNCILMEMBER TRAN, WITH A SECOND BY COUNCILMEMBER NUNEZ to approve the aforementioned items on the Consent Calendar. Vote resulted: Yes: Clark, Imperial, Nunez, Taylor, Tran No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. H. Consideration of Request from Consolidated Disposal for a Cost of Living Increase Effective January 1, 2007 and Amendment No. 4 to Existing Agreement Consolidated Disposal Services (CDS) is requesting an increase in their residential rates of 6.61 % and commercial rates of 7.64% to be effective January 1, 2007. These rates include a, one time only, additional increase to cover the extraordinary increase in gas prices over the past year. Furthermore they are requesting that the contract be amended to change the annual adjustment date from August 1s~ to January 1*~` to coincide with the change in the effective date of the Sanitation District's annual tipping fee increase. Staff is also requesting that the City Manager be provided the authority to implement the annual rate increase, provided it does not exceed the formula in the agreement. These two changes would be included in Amendment No. 4 to the contract. Recommendation: That the City Council approve amendment No. 4 to the agreement and schedule the hearing for the rate increase for the November 14, 02006 meeting. Mayor Taylor stated that he would prefer to defer the vote on this item until after the November 14 public hearing on the CDS rate increase. He also asked if approval of the staff recommendation would give the City Manager authority to implement annual cost CCb1IN: 10.24-06 Page 5 of 10 0 • of living increases without conducting a public hearing. City Attorney Wallin indicated that the City Manager would not have to conduct a public hearing to approve cost of living increases. If the Council is asked to vote to increase fees (outside of the cost of living increases), a public hearing must be conducted. Mayor Taylor asked what the difference was between the item before the Council currently and the public hearing on the 14th. Assistant City Manager Wagner explained the hearing needs to be conducted because the rate increase requested is above and beyond what is specified in the contract. In addition, approval of the item currently would change the effective date of the increase and grant the City Manager the authority to implement the annual increase as long as it does not exceed the formula in the agreement. COUNCILMEMBER TRAN MADE A MOTION, WITH A SECOND BY COUNCILMEMBER NUNEZ to approve Amendment No. 4 to the Consolidated Disposal Services agreement and schedule a rate increase hearing for the November 14, 2006 meeting. Vote resulted: Yes: Clark, Imperial, Nunez, Tran No: Taylor Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. Mayor Taylor explained he voted anon because of his preference to wait for the public hearing on the issue. Mayor Taylor asked how many abandoned and bulk items were picked up after. January 1, 2006. Mr. Fierro of Consolidated Disposal Services reported that from January 2006 to September 2006, CDS picked up 39 bulky abandoned items at no charge to the city or to residents. This is a remarkable difference from the year prior, when more than 500 abandoned items were picked up. There were 11 customers that called for pick-ups on a day other than regular pick-up dates from January, 2006 to September, 2006. Mr. Fierro also reported that since the City started the automated blue recycle bin program, the City has increased its recyclable materials by 35% averaging 120 tons per month. Mayor Taylor pointed out the increase is lower than what CDS projected last year. Mayor Pro Tem Nunez was surprised to learn CDS had less pick-ups on record for his residence, when he called to check. Mr. Fierro explained scavengers sometime go out in advance of the pick-up to get items they can sell, such as steel. CCMIN: 10-24-06 Page 6 of 10 • • Councilmember Clark pointed out scavenged items are reused and thus good for the environment. Mr. Fierro clarified scavenged items do not hurt the City, but do not help the City either. The aim is to increase recyclable items and keep disposal items down. L. Early Retirement Incentive Package In an effort to better facilitate a reorganization of City operations and responsibilities, discussions with the Assistant City Manager regarding the possibility of taking an early retirement have been initiated. Based on City Council direction and conversations that have occurred to date, an agreement has been reached whereby the Assistant City Manager would retire this year effective December 3, 2006, contingent on the City purchasing him 1.404 additional years of service credit. Recommendation: That the City Council authorize the City Manager or his designee to execute an early retirement incentive agreement and any related documentation to finalize the agreement with the Assistant City Manager. Mayor Taylor requested additional information and a written breakdown of costs, prior to voting on the item, since this is the 3rd time the agreement has changed. City Manger Lazzaretto clarified the recommended agreement is based on what the Council authorized at the closed session on October 10, 2006. COUNCILMAN TRAN MADE A MOTION, WITH A SECOND BY COUNCILMEMBER NUNEZ to authorize the City Manager or his designee to execute an early retirement incentive agreement and any related documentation to finalize the agreement with the Assistant City Manager. Vote resulted: Yes: Clark, Imperial, Nunez, Taylor, Tran No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. 3. MATTERS FROM MAYOR & CITY COUNCIL Mayor Taylor asked for feedback regarding the proposal to have the City Council only meet once next month, on December 19. All the Councilmembers were in agreement with the proposal. CCAI*: 10-74-06 Page 7 of 10 • • 4. MATTERS FROM CITY MANAGER & STAFF A. China Bistro Occupancy Permit Update As requested by Mayor Taylor, the following is an update of the progress of the outstanding correction items that the City is tracking with regard to the temporary certificate of occupancy issued to the business owner of the China Bistro Restaurant located at 8310 E. Valley Boulevard. Recommendation: That the City Council receive and file the report Director of Planning Brad Johnson informed the City Council that staff inspected the site and all of the outstanding issues have been completed. A final Occupancy Permit will be issued on October 25. B. Wal-Mart Construction Update Staff will provide an update to the City Council at its meeting on the outstanding construction related items for the Wal-Mart Supercenter. Recommendation: That the City Council receive and file the information. Director of Engineering Rukavina reported Wal-Mart has made great strides in completing the remaining items as outlined below. Item numbers refer to the punch list submitted by staff. Planning Items: • Landscaping has not been completed, a meeting has been scheduled for Thursday. • Installation of green screens will be done the following day. • Additional cameras will be installed on Thursday. • Item 8 under this section on the punch list submitted by staff is complete. Building Items: All Garden Center items are completed, except for one item. CCM[N: 10-24-06 Page 8 of 10 • • Public Works Items: • Sidewalk - West sidewalk is complete; sidewalk on Rush St. will be completed tomorrow. Walnut Grove sidewalk will start on Thursday. • Manhole on Delta Ave. has been lowered and the sidewalk there has been patched. • The crossing sign will be completed in conjunction with other projects; the plans have been approved and signed. • Work for Item 5 will start tomorrow. • Items 7, 8, and 9 pertaining to tree issues will be handled along with the sidewalk work. Item 10 (restaking of trees) is underway currently. • Item 11 goes along with a Planning item; a meeting has been scheduled for Thursday. • Item 12 is complete. Item 13 needs further review. Mr. Rukavina assured good progress is being made to complete all remaining projects. Mayor Pro Tern Nunez requested clarification about Item 13 and discussed handicap accessibility. Todd Kunioka, residing at 8400 Wells St., commented new trees on Rush Street would provide better shading if they were placed on the south side of the street. Mayor Taylor thanked him for the suggestion but indicated plant will not be changed. City Attorney Wallin reported the Council authorized the execution of two employment termination agreements at the Closed Session on October 10, 2006. Mr. Wallin reported the action at this point since the agreements have now been signed and finalized. C. Closed Session The City Council will recess to a closed session pursuant to Government Code Section 54956.9 Conference with Legal Counsel - Anticipated Litigation - zoning action Initiation of litigation pursuant to subdivision(c) of Section 54956.9: One Case CCMIN: 10-24-06 Page 9 of 10 • u The council recessed into closed session at 9:05 pm, and returned at 9:45 pm. City Attorney Wallin announced no reportable action was taken. 5. ADJOURNMENT There being no further action to be taken at this time, the meeting was adjourned at 9:45pm. The next regular meeting will be held on November 14, 2006, at 8:00 p.m. Respectfully submitted: City Clerk APPROVED: MAYOR CCMW: 10-2406 Page 10 of 10 Cl STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. CITY OF ROSEMEAD ) • I, Nina Castruita, City Clerk of the Rosemead City Council, do hereby certify that the minutes from October 24, 2006 were duly and regularly approved and adopted by the Rosemead City Council on the 14th of November 2006, by the following vote to wit: Yes: CLARK, IMPERIAL, NUNEZ, TAYLOR, TRAN No: NONE Absent: NONE Abstain: NONE k 4A) 1 Nina Castruita City Clerk Iy'` 'Ail ~o S E M F • O .yj 9 '7Ms staf • TO: HONORABLE MAYOR AND MEMBERS 64 ROSEMEAD CITY COUNCIL FROM: FRANK G. TRIPEPI, CITY MANAGER ~ t DATE: JUNE 18, 1996 RE: PROPOSAL FROM CONSOLIDATED DISPOSAL SERVICES, INC. (CDS) TO EXTEND CURRENT FRANCHISE AGREEMENT Attached for the Council's review, is a proposal from Consolidated Disposal Services, Inc. (CDS) for an extension of the firm's exclusive franchise with the City and a draft copy of a second amendment to, the agreement authorizing an extension. The proposal attempts to retain the same ter and cgriditions of the current agreement wherever possible. However, in order to meet the solid waste-diversion requirements of AB 939 and to ensure that CDS will be able to commit the resources necessary to meet those mandates, some changes are being proposed. The following is a brief explanation of the amendments requested: I. Evergreen Clause CDS is requesting an "evergreen clause" in the agreement. That clause states, quite simply that the contractor is granted a one-year extension to the agreement annually so that the term of the agreement shall remain constant at five-years. For example, on August 1, 1997, a one-year extension of the agreement would automatically take place. On August 1, 1998, another one-year extension would be granted, and every year thereafter until the City states its intent to sever the agreement at the end of the then current five-year term. In effect, an evergreen clause would require that the City of Rosemead issue a five-year notice of intent to end the agreement - subject, of course, to all other conditions set forth in paragraph P of the current agreement. 2. Collection Rates and Billing The current rates for residential and commercial refuse would remain unchanged through August 1, 1997. However, beginning at that time, CDS is requesting a minor change in the method of calculating the annual rate adjustment. Currently, the formula for rate adjustment is based on CPI X.75 and the annual change in County of Los Angeles landfill rates X.25. CDS proposes that the calculation of those two components be changed to reflect the increase in refuse collection rates attributable to increased disposal costs. CDS is requesting that the percentage of allowable adjustments attributable to disposal costs be increased from 25% to 30%. Example: COUNCIL AGENDA ITEM No. IZA Extension of Refuse Franchise June 18, 1996 Page 2. FACTOR %CHANGE %OVERALL COSTS TOTAL CPI 4.7% x.70 3.29% DISPOSAL 10% x.30 3.00% Sample Annual Increase 6.29% Under the current formula (CPI 75% and DISPOSAL 25%), the sample rate of increase, using the same figures as those above, would be 6.03% In addition, CDS is requesting language stating that disposal (landfill) costs are increasing as a percentage of the overall cost of waste removal and that the firm may apply to the City Council at a later date to increase the percentage of rate adjustment (currently proposed as 30%) assigned to disposal costs. Though the attached draft amendment includes such language, the Council is not obligated grant the request and remains free to consider those types of issues on its own terms. Of more importance, this section also includes language stating that "upon commencement of Material Recovery Facility (MRF) operations, a separate formula shall be set forth which takes into account the disproportionate disposal costs associated with commercial Material Recovery Serviced Accounts." In essence, this clause is an "agreement to agree" at a later date. As indicated in the attached proposal, CDS is planning to utilize a MRF in order to undertake a viable commercial recycling effort, and meet the diversion requirements of AB 939. However, there is no accurate way to estimate those costs at this time. CDS will continue to gather data on this issue and present those findings to the Council some time in the future. The attached draft franchise amendment does not tie the City of Rosemead to a specific course of action. It merely states CDS' intent to utilize a MRF when it undertakes Phase II of its commercial recycling plan and provides a mechanism allowing negotiation between the firm and the City for an appropriate rate adjustment at that time. This section also updates the income limitations for residents who qualify for the existing "Senior Citizen Hardship Rate." The proposed income limits stated on the draft amendment reflect the residential refuse rate increases granted by the City Council since CDS began providing services in 1991. 3. Refuse Containers In its proposal, CDS seeks to implement an automated collection program by December I, 1996. In so doing, they would distribute a single 100 gallon container to be used in the program to each household in the City. Should a resident require additional containers, they would be charged $1.50 each month for each additional container. There would be no cost, of course, for a replacement container. As proposed, no additional containers of refuse will be collected by CDS once the program is underway. That, of course, does not include greenwaste and recyclable materials currently collected at curbside. Please note that CDS included in its proposal a brochure for the 100 gallon containers to be used in the automated collection program. 0 0 Extension of Refuse Franchise June 1.8, 1996 Page 3. 4. Agreement Term and Renewal This is the section referring to the "evergreen clause" discussed previously. 5. Commercial Recycling Program This change amends paragraph T- Recycling of the current agreement to include language regarding the implementation of "Phase H - Materials Recovery Facility" outlined in the attached proposal from CDS. This amendment allows the contractor and the City to negotiate a rate to be paid by commercial accounts to offset the additional costs associated with a Materials Recovery Facility (MRF). 6. AB 939 Indemnification In the unlikely event that the California Integrated Waste Management Board would assess penalties for failing to meet mandated diversion requirements, CDS proposes that a new section be added to the agreement indemnifying the City against 90% of all fines that may be imposed. Currently, the City would be responsible for the entire cost of any penalties imposed by the Board. 7. Hazardous Materials This represents another addition to the current agreement whereby CDS shall implement a training program assisting their employees in identifying and handling hazardous waste. In addition, this section states that contractor would assist the City in disseminating information regarding the proper handling of hazardous materials. Attached for the Council's review is a copy of the proposal from CDS, a copy of the current franchise agreement, a copy of the first amendment to the agreement, a copy of the current refuse collection rates approved by the City Council and a copy of the proposed second amendment to the agreement implementing the changes discussed above. In addition, staff has included a recent refuse rate survey completed by the consulting firm of Hilton, Farnkopf and Hobson showing that the refuse collection rates in the City of Rosemead are among the lowest in Los Angeles County. Only three cities in the County (Los Angeles, Irwindale and Paramount) have lower residential refuse collection rates. Among those three, two (Irwindale and Los Angeles) do not charge residents for refuse collection. RECOMMENDATION: Staff recommends that the City Council approve the attached second amendment to the City's exclusive franchise agreement with Consolidated Disposal Services (CDS) and authorize the Mayor to execute the necessary documents. o®rmo..&po2rg SECOND AMENDMENT TO EXCLUSIVE REFUSE COLLECTION AND RECYLCING FRANCHISE AGREEMENT This Agreement made and entered into this day of 1996 b and be-tWeen the CITY OR ROSEMEAD, a municipal corporation, hereinafter referred to as "City" and CONSOLIDATED DISPOSAL SERVICE, INC. hereinafter referred to as "Contractor" hereby amends that certain agreement made and entered into effective August 1, 1991 and amended effective January 11, 1994 between the parties, hereinafter referred to as "Agreement" NOW THEREFORE, the City and the Contractor agree as follows: 1. The second paragraph of the Agreement is hereby revised to read as follows: The City and Contractor agree each with the other that Contractor shall have sole right to collect. haul and dispose of all refuse and conduct a comprehensive recycling program in the City of Rosemead for a term commencing August 1, 1996 and expiring July 31, 2001, provided however, that commencing August 1, 1997 and every year thereafter, automatic one year extensions shall be applied to said Agreement so that the term of this Agreement shall thereafter remain at a constant five years, subject to the rights of the parties to terminate the Agreement set forth in paragraph P. 2. Paragraph F - Collection Rates and Billing is hereby revised to read as follows: F. COLLECTION RATES AND BILLING I. The City and Contractor, as part of this Agreement, fix and determine uniform rates that shall be charged by the Contractor for the collection and removal of refuse. The rates thus fixed and determined shall remain in effect for the period prescribed or until changed pursuant to the provisions hereof The Contractor shall not charge or collect any fees or rates other than the fees or rates thus fixed and determined. 2. The City Council shall, not more frequently than once per year, authorize a rate adjustment by application of the following formula and procedure to then current rates: The total rate paid by customers is comprised of m,o components: A. Disposal Cost. The disposal cost component consists of tipping fees paid to and established by operators of landfills. The Contractor has no control over the tipping rates established by the County Sanitation District or private landfill operators. B. Collection Cost. The collection cost component consists of the Contractor's costs for the collection and hauling of waste. Collection Cost rate freeze. Contractor agrees that there will be no increase in the collection cost component for residential customers effective prior to August 1, 1997. Except for the rate freeze on the collection cost component for residential customers, the following rate adjustment formula shall apply: Contractor shall be entitled to rate adjustments, effective on the anniversary date of the franchise (.Au g ust 1) base d upon the following formula: .70 x increase in Consumer Price Index; All items, 1982-84 = 100 (Los Angeles-Anaheim-Riverside) from the base month (commencing June. 1991) to the following year's comparison month (June, 1992, June 1993, etc.) plus 30 x the percentage change in tipping fees to arrive at the percentage adjustment to be applied to all rates herein authorized. Allowable adjustments, based upon tipping fees, shall be based upon the rates as established by the Los Angeles CounTY Sanitation District. Example: FACTOR '/-CHANGE %ONTERALL COSTS TOTALS CPI 4.7% x.70 3.29 DISPOSAL 10.00% x,30 3.00 Adjustment percentage 6.29 City and Contractor agree that the disposal cost component has been increasing as a percentage of the overall costs of waste removal. If the Contractor's disposal costs continue to escalate as a portion of the overall cost, Contractor may apply to the City Council to, increase the percentage of rate adjustment, currently 30%, assigned to disposal costs. Upon the commencement of commercial Material Recovery Facility operations, a separate formula shall be set forth which takes into account the disproportionate disposal costs associated with commercial Materials Recovery Facility serviced accounts. 3. The Contractor shall not make or grant any preference or advantage to any person, nor subject any person to prejudice or disadvantage with respect to rates, fees, charges, service, facilities, rules, regulations, or any other respect. Contractor is specifically authorized to charge a Senior Citizen Hardship rate and a Handicapped rate for those accounts who meet th f 1] criteria: e o owmg ehgtbtltty A. SENIOR CITIZEN HARDSHIP RATE - Those customers, aged 62 and over, who meet the following income limitations, shall be entitled to the Senior Citizen Hardship Rate as listed in this Agreement: Single Income not to exceed $1,098 per month Family (2 or more) Income not to exceed 52,198 per month Contractor is authorized to require proof of age and an affidavit of eligibility signed by the customer. The "not to exceed" income levels listed above shall be increased to reflect cost of living adjustments on August 1 each year of the . franchise. B. HANDICAPPED RATE - Those customers, who meet the eligibility requirements of the Department of Motor Vehicles for issuance of a handicapped parking permit, shall be entitled to backyard service, at the regular residential rate. If the handicapped individual also qualifies for the Senior Citizen Hardship Rate, he or she shall be entitled to backyard service at the Senior Citizen Hardship Rate as listed in this Agreement. 4. Except as otherwise provided herein, Contractor will bill each customer directly for service and will collect from such customer for same. City shall not be responsible for collection or payment for such services. 5. Contractor may not suspend its collection and disposal services hereunder to a customer who has failed to pay a proper billing for services. Contractor shall make all reasonable efforts to diligently pursue and collect all fees and charges due Contractor for rendering such services. In the event of a delinquency, the Contractor shall also notify the owner of the real property of the amount of the delinquency and the possibility of property tax lien collection. Contractor shall provide to City, not more frequently than quarterly, individual letters, postage prepaid, which contain the names of the property owner and occupant (if different from the owner), the address of the owner as shown on the latest updated assessment roll, including the assessor's parcel number and whatever other information is required by the Los Angeles County Tax Collector. Said letters shall state the amount of delinquency, penalties, late charge(s) and collection costs. City shall allow Contractor to use the update assessment roll records available at City Hall. City allows such use as an accommodation only and does not warrant the accuracy of such records. The only responsibility of the City pertaining to notice of and public hearing shall be as follows: The City Manager or his designee shall notify property owners by sending the letter designated in the paragraph next above. Such notice shall further declare that the City Council shall at a regular meeting, review and approve as an assessment against the property the amount delinquent and unpaid, the amount of the penalty and late charge(s), collection costs, including administrative costs incurred. If the total assessment determined and approved by the City Council is not paid within ten (10) days after such determination, then and in that event, there shall be recorded in the Office of the County Recorder a statement of the total balance due together with the legal description of the property affected. From and after the date of such recordation, the balance'due shall be a special assessment against the real property. The assessment shall be collected at the same time and in the same manner as are county property taxes and shall be subject to the same penalties and to the same procedure and sale in cases of delinquency as provided for other taxes and assessments appearing on the count), property tax bill. All laws applicable to the leery, collection and enforcement of county taxes shall be applicable to such special assessment. Contractor shall be paid the amount actually recovered by the City on an unpaid account less 10% (ten per cent). Said payment to Contractor shall be made within thirty (30) days of the City's receipt of funds. 6. The Contractor shall obtain the written approval of the City Manager as to the billing periods used. 7. Each bill shall contain the name, address, telephone number and office hours of the Contractor, the amount and period being billed, a statement that the Contractor will provide, upon request, a complete list of the rates for the various types of services provided by the contractor, a statement indicating how to file a complaint and how complaints are resolved, as well as the possibilities 4 . . of recourse available to customers, the holiday schedule, and any other information necessary to assist residents as determined by the City Manager. At least 30 days prior to any rate change, the Contractor shall mail all customers notice of said rate change. 3. Paragraph I- Refuse Containers is hereby amended to read as follows: I. UF-UsE CONTAINER 1. Contractor shall implement an automated residential container program by December 1, 1996. 2. Each residence will be furnished, at no charge, one automated container with approximately 100 gallon capacity. Additional 100 gallon containers will be provided at a charge of 51.50 per month for those residents who require additional capacity. Smaller containers will be made available for customers with special circumstances justif},ing a smaller container. 3. Contractor shall submit a detailed implementation plan of the automated collection program to the City for advance approval. 4. Once the automated collection program is fully implemented, customers must place all refuse in the automated container(s) provided. No trash bags, cardboard boxes, loose debris or waste placed in other non-automated containers will be collected with the exception of appropriately sorted and tagged green waste and disposal items on designated quarterly"bulky item" citywide collection days. 5. All refuse containers shall be replaced, upright, with the lids immediately beside the containers. Containers and lids shall not be placed or thrown on the streets, alleys, highways, or on adjoining property. 6. The Contractor, his agents and/or employees, shall not throw refuse containers from the truck to the pavement or parkway, shall not cause damage by str iking them against the truck to dislodge contents, or in any other way break or damage or roughly e the same. 7. claims for damage of containers, by reason of the misuse or rough handling of sa' containers by the Contractor, shall be presented to the Contractor by the resident. e Contractor shall make a decision concerning settlement within 48 hours of receipt of such claims. 5 8. Any refuse container which will n t1ofn refu se without spilling, which leaks or is not water tight shall be replaced person from whom refuse is collected, within ten (10) days after notice from the Contractor stating the condition of such container. Such notice shall be made by attaching a tag to such container and indicating thereon the defective condition thereof. 9. The Contractor shall provide large capacity containers (bins) for mechanical loading wherever customers so request their use, and the use thereof shall be in accordance with the rates established herein. Each container provided shall have the Contractor's name, or company name, placed and maintained on one or more locations on the outside in letters not less than three (3) inches in height. The Contractor shall regularly inspect all large capacity containers, repair or replace any damaged containers, and maintain an inventory need to meet the demand of customers. All such containers shall be maintained by Contractor so as not to leak. Upon customer request, containers shall feature tight-sealing lids (the Balanced Lid Systems (or equivalent) bins specified in Exhibit D to the Contractor's proposal) 10. Residents electing to use large capacity containers for mechanical loading shall use such containers exclusively and shall place such container for pickup where they are readily accessible to the Contractor's equipment. 11. The Contractor shall provide sufficient workers and equipment so as to limit the time that the bins are placed in the public right-of-way to a maximum of three (3) hours. 4. Paragraph O- Agreement Term and Renewal is hereby amended to read as follows: The Contractor shall have the exclusive right to collect, haul and dispose of all refuse within the City fora term commencing August 1, 1996 and expiring July 31, 2001, provided however; that commencin_s August 1, 1997 and every year thereafter, automatic one year extensions shall be applied to said Agreement so that the term of this Agreement shall thereafter remain at a constant five year s, subject to the rights of the parties to terminate the agreement set forth in paragraph P. of Agreement. Should either party desire that said automatic one-year renewal and extension term be terminated, such party may give the other written notice of such not later than May 1 of any Year of the Agreement. Such notice will terminate the automatic one-year renewal and extension provision, and the Agreement shall remain in effect for the balance of the term outstanding. 5. Paragraph T- Recycling is hereby amended by the addition of the following of the conclusion thereof: 6 5. Commercial recycling program. The Contractor shall undertake the program described in its Waste Services Franchise Renewal Proposal. Prior to the implementation of Phase U - Materials Recovery Facility, the Contractor and City shall negotiate a rate to be paid by commercial accounts that will reimburse the Contractor for the substantial additional disposal costs associated with Materials Recovery Facilities. An implementation plan and initial rate schedule for commercial accounts with Materials Recovery Facility service shall be subject to the City Council's review and approval. Upon adoption of the initial rate schedule, a separate rate adjustment formula shall be set forth which takes into account the disproportionate disposal costs associated with commercial Materials Recovery Facility serviced accounts. 6. A new paragraph "AA - AB 939 Indemnification" is hereby added to the Agreement as follows: AA. AB 939 Indemnification. Contractor agrees to protect, defend, indemnify and hold harmless the City against 90% (ninety percent) of all fines or penalties imposed by the California Integrated Waste Management Board or its successor due to the failure of the City to divert from landfills at least 25 % (twenty five percent) of the garbage and rubbish including recyclable materials attributable to City, or, commencing no earlier than January, 1, 2000, 50% (fifty per cent) of such garbage and rubbish including recyclable materials thereafter, or such lesser percentage equal to the landfill diversion goals imposed on local governments by AB 939 as it may be amended from time to time provided that the City's failure to accomplish the landfill diversion goals shall not result from any negligent or willful act or omission of City. 7. A new paragraph "BB - Hazardous Materials" is hereby added to the Agreement as follows: BB. Hazardous Materials. Contractor shall adopt and adhere to a training program that will assist their employees to identify and properly dispose of any hazardous materials that may come into their possession. Contractor shall reasonably assist City in dissemination of information regarding hazardous materials to local residents and businesses. 7 IN WITNESS WHEREOF, the City by order of its City Council and the Contractor by order of its Board of Directors, have caused this Second Amendment to Aereement to be executed on , 1996. CITY OF ROSEME.AD By: Margaret Clark, Mayor ATTEST: City Clerk CONSOLIDATED DISPOSAL SERVICE, INC. By: John A. Telesio; President/CEO 8 • EXCLUSIVE REFUSE COLLECTION AND RECYCLING FRANCHISE AGREEMENT THIS AGREEMENT is made and entered into effective, the Ist day of August, 1991, by and between the CITY OF ROSEMEAD, a municipal corporation, hereinafter referred to as City, and CONSOLIDATED DISPOSAL SERVICE, Inc., hereinafter designated as Contractor. The City and Contractor agree each with the other that, for a period of five (5) years from after the 1st day of August, 1991, the Contractor shall have sole right to collect, haul and dispose of all refuse and conduct a comprehensive recycling program in the City of Rosemead in accordance with the following terms and conditions: A. DEFINITIONS 1. City shall mean the City of Rosemead, California. City Attorney shall mean the Rosemead City Attorney. City Clerk shall mean the Rosemead City Clerk or her authorized designee. 4. City Council shall mean the Rosemead City Council. 5. City Manager shall mean the Rosemead City Manager or his authorized designee. 6. Contractor shall mean Consolidated Disposal Service, Inc. 7. Handicapped shall identify a person who satisfies the Department of Motor Vehicles requirements for the issuance of a handicapped parking permit. S. H.D.P.E. plastic shall mean high density polyethylene such as milk jugs, liquid detergent and motor oil bottles. 9. P.E.T. plastic shall mean poly-ethylene terephtalate such as plastic soft drink bottles. 10. Recyclable material means any one or more of the following categories of materials collected and recycled from within the City: A. Newspapers; B. Aluminum cans; • • C. Glass; D. P.E.T. and H.D.P.E. plastic containers; and E. Such other materials, as, from time to time, as may be commercially reasonable to collect and reuse. 11. Refuse shall mean "garbage" and "combustible and non-combustible rubbish", "miscellaneous debris" and "combined rubbish" as those terms are defined in Chapter IV, Article V of the Rosemead Municipal Code. 12. Resident shall mean the owner, occupant, tenant or manager of private residential property or other use of private residential property. 13. Senior Citizen shall mean a customer who is at least 62 years old. 14. Tipping charges shall mean the per ton charges, including any surcharges, imposed by the Los Angeles County Sanitation District, for dumping waste. B. WORK TO BE DONE The work to be done under this Agreement shall include the furnishing of all labor, material, equipment and expenses necessary to perform the following minimum services: 1. Collection, hauling and disposal of refuse from the premises of any and all residents and businesses in the City, at the regularly scheduled intervals, and at the rates as provided herein. Said work shall include regularly scheduled pick-up of refuse once a week from curb or alley. Contractor shall also provide regularly scheduled and one-time special container (bin) service to any residence requesting such service. 2• Collection from City facilities as follows: (a) City Hall - Contractor shall, at no charge, furnish sufficient bins and shall pick-up and remove the contents of said bins on a schedule approved by the City Manager. • • (b) Parks and Recreation Department - At the Community Center, Zapopan Park, Garvey Park, Rosemead Park and the City Maintenance Yard, Contractor shall, at no charge, furnish sufficient bins and shall pickup and remove the contents of said bins on a schedule approved by the City Manager. (c) City Litter/Trash Receptacles - City owns approximately 32 litter and trash barrels, located on the sidewalk at fixed locations on major streets. A listing of these trash receptacles was provided on Exhibit T" to the request for proposals, which is incorporated herein by this reference. Contractor shall empty and remove the contents of said receptacles throughout the City not less than three (3) times per week on a schedule approved by the City Manager. Contractor shall replace the barrel liners at no cost to City. Contractor agrees to pick up, on these terms and conditions, any additional litter and trash barrels acquired by the City up to a maximum of 18 additional barrels (a total of 50), during the term of this Agreement. 3. The Contractor shall not be required to remove waste building materials and other waste materials from the construction, alteration, repair, and moving or demolition of buildings. However, owners and tenants of residential premises may put out waste materials for collection by the Contractor if the alteration of repair work is performed individually by the owner or tenant. 4. Unless otherwise directed by the City, the Contractor shall dispose of all collections at a site located outside of the City limits. 5. All work required of the Contractor shall be done in a thorough and workerlike manner to the satisfaction of the City. C. LOCATION OF COLLECTIONS Collection of residential refuse will be made either at curbside or backyard (in the case of qualified handicapped residents). D. COLLECTION HOURS AND DAYS 1• Unless the City Council determines otherwise, the collection of residential refuse in the City shall be confined to Monday through Friday between the hours of 6:00 a.m. and 4:00 p.m. Collection may be made on Saturday if a holiday occurs within the preceding six (6) days. Collection of commercial accounts on Saturdays shall be scheduled so as to not disturb residential neighborhoods. 3 2. If, in the judgment of the City Manager, conditions warrant a temporary departure from the regular days and hours of collection, the City Manager may authorize collection of refuse on such days and during such hours as he deems appropriate. Any permanent changes to the collection schedule must be approved by the City Council. 3. To the extent reasonably possible, collections on each route shall commence at the same point; at the same time and follow the same route each time collections are made. 4. The Contractor shall provide sufficient workers and equipment to complete within one day the collection of all refuse placed for collection in any mutually agreed upon collection district within the City on the given collection day. E. COLLECTION SCHEDULE 1. The schedule of collections shall be subject to the approval of the City Manager. The Contractor shall prepare and file with the City Manager a collection schedule, together with a complete map of the refuse collection districts within the City. He shall indicate thereon in an appropriate and easily understandable manner the days on which collections shall be made. . 2. The collection schedule, when approved by the City Manager, shall be maintained unless a change therein is first approved, in writing, by the City Manager. 3. Prior to the start of any new collection schedule, as approved by the City, the Contractor shall, at his own expense, by written notice with postage prepaid and forwarded through the United States mail or by personal service, notify each customer of the day or days of the week on which refuse shall be collected. The notice shall contain the day or days of the week upon which collections will be made, the name, address and telephone number of the Contractor, and other information deemed necessary by the City Manager. Said notice shall be posted in the mail or by personal service to customer served not less than fourteen (14) days prior to the change of collection schedule. The Contractor shall also cause a schedule of collections to be published twice in a newspaper of local circulation once each week for two successive weeks immediately prior to the change in the collection schedule in a district. The published schedule shall contain the same information as the written notice outlined above, and shall clearly indicate the precise area involved in the change. 4. For any given roadway, collections on both sides of the roadway shall be made on the same day. 4 F. COLLECTION RATES AND BILLTNG 1. The City and Contractor, as part of this agreement, fix and determine uniform rates that shall be charged by the Contractor for the collection and removal of refuse. The rates thus fixed and determined shall remain in effect for the period prescribed or until changed pursuant to the provisions hereof. The Contractor shall not charge or collect any fees or rates other than the fees or rates thus fixed and determined. 2. The City Council shall, not more frequently than once per year, authorize a rate adjustment by application of the following formula and procedure to the then current rates: Contractor shall be entitled to no rate increases whatsoever until the first anniversary of the franchise (August 1, 1992). Effective August 1, 1992 and on subsequent anniversary dates during the term hereof, Contractor shall be entitled to a rate adjustment based upon the following formula: .75 x increase in Consumer Price Index, All items, 1982-84 = 100 (Los Angeles-Anaheim-Riverside) from the base month (commencing June, 1991) to the following year's comparison month (June, 1992; June, 1993; June, 1994; and June, 1995) plus .25 x the percentage change in tipping fees to arrive at the percentage adjustment to be applied to all rates herein authorized, PROVIDED HOWEVER that Contractor and City a ee that anv increase authorized by the a liention of this formula shall be limited to no more than a total of five percent (5%) for the scheduled rate adjustments effective August 1 1992 and August 1 1993. Allowable adjustments, based upon tipping fees, shall be based upon the rates at the Los Angeles County Puente Hills landfill as established by the Los Angeles County Sanitation District. Example: FACTOR % CHANGE PERCENT OF TOTALS OVERALL COSTS CPI 4.70% X .75 3.525 Tipping fees 10.00% X .25 2.500 Adjustment percentage 6.525 5 W • Thus, the otherwise allowable adjustment percentage of 6.525% is limited by the overall cap of five percent (501c). Contractor and City further agree that any allowable rate adjustments in the fourth and fifth years of the franchise shall be based upon the rates effective August 1, 1993 and August 1, 1994 respectively. Contractor shall not be entitled to any increases to make up for otherwise allowable increases in the first three years that were limited by the five percent (501c) cap. 3. The Contractor shall not make or grant any preference or advantage to any person, nor subject any person to prejudice or disadvantage with respect to rates, fees, charges, service, facilities, rules, regulations, or any other respect. Contractor is specifically authorized to charge a Senior Citizen Hardship rate and a Handicapped rate for those accounts who meet the following eligibility criteria: A. SENIOR CITIZEN HARDSHIP RATE - Those customers, aged 62 and over, who meet the following income limitations, shall be entitled to the Senior Citizen Hardship Rate as listed in this Agreement: Single Income not to exceed 5985 per month Family (2 or more) Income not to exceed $1,971 per month Contractor is authorized to require proof of age and an affidavit of eligibility signed by the customer. The "not to exceed" income levels listed above shall be increased to reflect cost of living adjustments on August 1 each year of the franchise. B. HANDICAPPED RATE -Those customers, who meet the eligibility requirements of the Department of Motor Vehicles for issuance of a handicapped parking permit, shall be entitled to backyard service, at the regular residential rate. If the handicapped individual also qualifies for the Senior Citizen Hardship Rate, he or she shall be entitled to backyard service at the Senior Citizen Hardship Rate as listed in this Agreement. 6 • s 4. Except as otherwise provided herein, Contractor will bill each customer directly for service and will collect from such customer for same. City shall not be responsible for collection or payment for such services. 5. Contractor may not suspend its collection and disposal services hereunder to a customer who has failed to pay a proper billing for services. Contractor shall make all reasonable efforts to diligently pursue and collect all fees and charges due Contractor for rendering such services. In the event of a delinquency, the Contractor shall also notify the owner of the real property of the amount of the delinquency and the possibility of property tax lien collection. Contractor shall provide to City, not more frequently than quarterly, individual letters, postage prepaid, which contain the names of the property owner and occupant (if different from the Owner), the address of the owner as shown on the latest updated assessment roll, including the assessor's parcel number and whatever other information is required by the Los Angeles County Tax Collector. Said letters shall state the amount of delinquency, penalties, late charge(s) and collection costs. City shall allow Contractor to use the update assessment roll records available at City Hall. City allows such use as an accommodation only and does not warrant the accuracy of such records. The only responsibility of the City pertaining to notice of and public hearing shall be as follows: The City Manager or his designee shall notify property owners by sending the letter designated in the paragraph next above. Such notice shall further declare that the City Council shall at a regular meeting, review and approve as an assessment against the property the amount delinquent and unpaid, the amount of the penalty and late charge(s), collection costs, including administrative costs incurred. If the total assessment determined and approved by the City Council is not paid within ten (10) days after such determination, then and in that event, there shall be recorded in the Office of the County Recorder a statement of the total balance due together with the legal description of the property affected. From and after the date of such recordation, the balance due shall be a special assessment against the real property. The assessment shall be collected at the same time and in the same manner as are county property taxes and shall be subject to the same penalties and to the same procedure and sale in cases of delinquency as provided for other taxes and assessments appearing on the county property tax bill. All laws applicable to the levy, collection and enforcement of county taxes shall be applicable to such special assessment. Contractor shall be paid the amount actually recovered by the City on an unpaid account less 10% (ten per cent). Said payment to Contractor shall be made within thirty (30) days of the City's receipt of funds. 7 • • 6. The Contractor shall obtain the written approval of the City Manager as to the billing periods used. 7. Each bill shall contain the name, address, telephone number and office hours of the Contractor, the amount and period being billed, a statement that the Contractor will provide, upon request, a complete list of the rates for the various types of services provided by the contractor, a statement indicating how to file a complaint and how complaints are resolved, as well as the possibilities of recourse available to customers, the holiday schedule, and any other information necessary to assist residents as determined by the City Manager. At least 30 days prior to any rate change, the Contractor shall mail all customers notice of said rate change. G. OFFICE. INQUIRIES AND COMPLAINTS 1. The Contractor shall maintain telephone listings in the directories of the telephone companies servicing the City in the name by which the firm is most commonly known. 2. The Contractor shall have at all times during the hours between 6:00 a.m. and 5:00 p.m., Monday through Friday, an employee at the Contractor's office to answer inquiries and to receive complaints. 3. The Contractor shall maintain a written record of all complaints received, including the name and address of the customer, a description of the complaints, the time the complaint was received, the action taken in response to the complaint, and the time the responsive action was taken. The record shall be kept at the Contractor's office, and shall be available for inspection or duplication at all reasonable times by the City Manager or his designee. 4. In the event that any customer reports to the City Manager that a complaint or claim for a damaged container has not been resolved to the customer's satisfaction, the City Manager may require the Contractor to present a detailed report outlining the nature of the complaint and remedies proposed or action taken to resolve said complaint or claim. If it is the opinion of the City Manager that the Contractor's remedies proposed and action taken are insufficient to adequately resolve the said complainant claim, the City Manager may require the Contractor to carry out an alternative remedy process intended to resolve the complaint or claim, Said remedies will be carried out at no cost whatsoever to the City, unless otherwise specified by the City Manager. 5. The Contractor shall maintain a location, within the City of Rosemead, where bills may be paid and service changes may be initiated. 8 H. VEHICLES AND EQUIPMENT 1. All trucks and other equipment used to collect, haul or dispose of refuse shall at all times be kept clean, in good repair, and well and uniformly painted, to the satisfaction of the City Manager. Contractor shall utilize the equipment specified in its proposal unless the City Manager approves in advance and in writing, equipment substitutions. Each truck shall be constructed, used and maintained so that refuse, oil or grease will not blow, fall or leak out of the truck onto the street. All refuse shall be transported by means of vehicles equipped with water-tight bodies fitted with close fitting metal covers. Should any refuse be dropped or spilled in collecting, transferring or transporting, it shall be immediately cleaned up. A broom and a shovel shall be carried on each truck at all times for this purpose. Contractor shall be notified of and given a reasonable opportunity to cleanup any such spills before the City incurs expenses for such cleanup. All expenses incurred by the City in the collection and disposal of any such spilled or dropped refuse shall be paid to the, City, on demand, by the Contractor. 3. All refuse-conveying truck or trailer bodies shall be cleaned thoroughly by flushing with water after each day's use. 4. The Contractor's name and telephone number shall be painted on each side of the body of each truck. The letters shall be in a color contrasting sharply with color of the truck, and shall not be less that six (6) inches in height and four (4) inches in width. 5. The brake system of each vehicle used for collecting, hauling or disposing of refuse in the City shall be inspected and certified twice each year by the California Highway Patrol or by a brake inspection station licensed by the California Highway Patrol. Notice of such certification shall be filed with the City Manager each August and February. Failure to submit required notice of such certification may be grounds for terminating this Agreement per the procedure outlined in Paragraph P - Termination. 6. Each vehicle of three (3) or more axles used for collecting hauling or disposing of refuse in the City shall be maintained in conformance with the Motor Carrier Safety Regulations set forth in Title 13 of the California Administrative Code (Motor Vehicles). 7. The City Manager may cause any vehicle used for collecting, hauling or disposing of refuse in the City to be inspected and tested at any time and in such manner as may be appropriate to determine that such vehicle is being maintained in compliance with the provisions of the Rosemead Municipal Code and the 9 • 0 California Vehicle Code. 8. The City Manager may authorize the removal of any vehicle from service if said vehicle is found to be in non-conformance with the Rosemead Municipal Code or the California Vehicle Code. Vehicles shall not be returned to service until duly authorized by the City Manager. 9. Each vehicle used for collecting, hauling or disposing of refuse shall be equipped with an audible warning device that is activated when the vehicle is backing up. 10. No vehicle used for collecting, hauling or disposing of refuse shall be loaded in excess of the manufacturer's gross vehicle weight rating or in excess of the maximum weight specified by the California Vehicle Code, whichever is less. Evidence of the manufacturer's name and gross vehicle weight rating shall be maintained in, or upon, every vehicle. 1. REFUSE CONTAINERS 1. All refuse containers shall be replaced, upright, with the lids immediately beside the containers. Containers and lids shall not be placed or thrown on the streets, alleys, highways, or on adjoining property. 2. The Contractor, his agents and/or employees, shall not throw refuse containers from the truck to the pavement or parkway, shall not cause damage by striking them against the truck to dislodge contents, or in any other way break or damage or roughly handle the same. All claims for damage of containers, by reason of the misuse or rough handling of said containers by the Contractor, shall be presented to the Contractor by the resident. The Contractor shall make a decision concerning settlement within 48 hours of receipt of such claims. 4. Any refuse container which will no longer hold refuse without spilling, which leaks or is not water tight shall be replaced by the person from whom refuse is collected, within ten (10) days after notice from the Contractor stating the condition of such container. Such notice shall be made by attaching a tag to such container and indicating thereon the defective condition thereof. 5. The Contractor shall collect and dispose of all cardboard boxes used for the collection of refuse. 6. The Contractor shall provide large capacity containers (bins) for mechanical loading wherever customers so request their use, and the use thereof shall be in accordance with the rates established herein. Each container provided shall have 10 0 • the Contractor's name, or company name, placed and maintained on one or more locations on the outside in letters not less than three (3) inches in height. The Contractor shall regularly inspect all large capacity containers, repair or replace any damaged containers, and maintain an inventory need to meet the demand of customers. All such containers shall be maintained by Contractor so as not to leak. All such containers utilized in Rosemead shall feature tight-sealing lids (the Balanced Lid Systems (or equivalent) bins specified in Exhibit D to the Contractor's proposal) 7. Residents electing to use large capacity containers for mechanical loading shall use such containers exclusively and shall place such container for pickup where they are readily accessible to the Contractor's equipment. 8. The Contractor shall provide sufficient workers and equipment so as to limit the time that the bins are placed in the public right-of-way to a maximum of three (3) hours. J. STATUS OF REFUSE All refuse collected pursuant to this Agreement shall be deemed to be the property of the Contractor, as of the time the same is received by it, unless otherwise directed by the City Council of City, in its sole discretion. In the event the City's directions regarding disposal transfer or processing increases Contractor's costs, Contractor shall be entitled to a rate increase to recoup these costs. City shall be authorized to require complete financial data, which demonstrate conclusively the additional costs, before approving such a rate increase. K. CONTRACTOR'S NAME The Contractor shall not use the words "Rosemead", "City", "Municipal", "Community" or other like words in his corporate name or on his equipment. L. PERFORMANCE BOND 1• Upon being awarded approval for the collection, removal and disposal of refuse in the City, the Contractor shall file with the City Clerk and shall thereafter during the entire term of the Agreement maintain in full force and effect a corporate surety bond or other adequate surety agreement in a form satisfactory to the City Attorney in the amount of Three Hundred Thousand Dollars ($300,000) for the Contractor's faithful performance of this agreement. Said bond shall be so conditioned that in the event that the Contractor shall fail to comply with any one or more of the provisions of the Agreement, then there shall he recoverable jointly and severally from the Contractor and surety any 11 damages or loss, or costs suffered or incurred by the City as a result thereof, including attorney's fees and costs of any action or proceeding, and the full amount of any compensation, indemnification, cost of removal or abandonment of any property or other cost which maybe in default, up to the full principal amount of such bond. 3. Said bond shall not be canceled, altered or allowed to lapse without at least thirty (30) days' prior written notice to the City Clerk by the surety. 4. Failure to file or maintain such a bond shall be deemed a breach of the Agreement, and shall be grounds to terminate the Agreement by the City Council. M. INSURANCE 1• Contractor shall concurrently furnish to the City and file with the City Clerk, and at all times during the existence of any franchise granted hereunder, maintain in full force and effect, at its own cost and expense, a general comprehensive public liability insurance policy, including coverage for premises-operations, explosion and collapse hazard, underground hazard, contractual insurance, broad form property damage, independent contractors; personal injury and comprehensive automobile liability, comprehensive insurance in protection of the City, its officers, boards, commissioners, agents and employees, with a company approved by the City Manager in a form satisfactory to the City Attorney, protecting the City and all persons against liability for loss or damage for personal injury, death and property damage, occasioned by the operations of the Contractor under this Agreement with a minimum of not less than Five Million Dollars ($5,000,000.00) combined single limit for bodily injury, including accidental death and property damage. 2. The City, its officers, boards, commissions, agents and employees shall be named as an additional insureds in any of said insurance policies. Where such insurance is provided by a policy which also covers Contractor or any other entity or persons, it shall contain the standard cross-liability endorsement. Such policies shall contain a provision that a written notice of cancellation or material alteration in coverage of said policy shall be delivered to the City Clerk thirty (30) days in advance of the effective date thereof. Said insurance Policv shall contain the followine endorsements: (a) The naming of an additional insured, as herein provided, shall not affect any recovery to which such additional insured would be entitled under this policy if not named as such additional insured; and 12 (b) The additional insured named herein shall not be held liable.for any premium or expense of any nature on this policy or any extension thereof; and (c) The additional insured named herein shall not; by reason of being so named, be considered a member of any mutual insurance company for any purpose whatsoever; and (d) The provisions of the policy will not be changed, suspended, canceled or otherwise terminated as to the interest of the additional insured named herein without first giving such additional insured thirty (30) days written notice; and (e) Any other insurance held by the additional insured shall not be required to contribute anything toward any loss or expense covered by the insurance which is referred to by the certificate. 3. Failure to file or maintain said policy of insurance shall be deemed a breach of the Agreement, and shall be grounds to terminate the Agreement by the City Council. N. CITY HELD HARMLESS Contractor shall indemnify and hold harmless the City, its officers, boards, commissions, agents and employees against and from any and all claims, demands, causes of actions, actions, suits, proceedings, damages; costs and liabilities (including costs on liabilities of the City with respect to its employees) of every kind and nature whatsoever including, but not limited to, damages for injury and death, or damage to persons or property, and regardless of the merit of any of the same, liability for environmental cleanup or response costs related to the hauling and disposal of the waste and or recyclable materials that are the subjects of this agreement, and against all liability to others and against any loss, cost and expense resulting or arising out of any of the same including any attorney fees, accountant fees, expert witness or consultant fees, court costs, per diem expense, traveling and transportation expense or other cost or expenses arising out of, or pertaining to, the exercise or the enjoyment of this Agreement whether such performance be by the Contractor, his sub-contractor, or anyone directly or indirectly employed by him, and whether such damages accrue or are discovered before or after termination of this Agreement. 0. AGREEMENT TERM AND RENEWAL 1. The Contractor shall have the exclusive right to collect, haul and dispose of all refuse within the City for a period of five (5) years from the effective date of this Agreement. 13 2. The Agreement may be renewed for successive five-year periods or any lesser period if the City and the Contractor both consent thereto in writing. Contractor's request for renewal must be submitted no sooner than 3 years and six months after the effective date of this contract and no later than six months prior to the expiration date of the contract. The City may establish conditions for renewal and may require contractor to submit a detailed proposal describing requested terms of renewal and other pertinent information as deemed necessary by the City Council. This provision is not intended to confer any renewal rights to Contractor whatsoever. The City retains the option to seek additional proposals at the conclusion of this term. P. TERMINATION 1. In addition to any other remedy herein provided, or provided by law, the City may terminate this agreement if the contractor is in default of any term or provision hereof, including the requirements that performance shall be in a workerlike manner and otherwise satisfactory to the City; provided, however, that before such right of termination may be exercised by the City, the City shall give to the Contractor written notice of such default, specifying the particulars in which the Contractor is in default, and if such default is cured and satisfactory service rendered by the Contractor as determined by the City, within 15 days after such written notice, the agreement shall not be terminated by the City. During the 15- day period, the contractor may request a hearing before the City Council and submit evidence in accordance with Section 2 below or any other information showing that no default has occurred. The City Council shall afford Contractor a due process hearing during which it considers all pertinent information before its final determination regarding termination or other remedies. 2. Acts of God or acts of other persons or combinations thereof over which the Contractor does not have control are not subject to complaint as matters of unsatisfactory or failure of performance by the Contractor. The Contractor is responsible to show evidence of these conditions to the satisfaction of the City. 3. In the event the Contractor shall for any reason become unable to or fails in any way to collect or remove refuse as provided herein, and Contractor is determined to be in default of its contractual obligations after the opportunity for hearing before the City Council, the City may declare the amount of the performance bond described herein forfeited to the City. 4. Should this Agreement be terminated for any reason, all accounts receivable records and route records shall immediately become the property of the City. 14 • • In the event of termination of this Agreement due to breach by the Contractor, Contractor shall be liable to the City for all loss, damage or expense for which the City may become liable or indebted to provide replacement service to its residents and businesses. 6. In the event Contractor is not awarded an agreement to continue to provide the services required by this Agreement, at the end of the term hereof, or upon termination for cause prior to the end of the term hereof, then Contractor shall cooperate fully with City and subsequent Contractor to assure a smooth transition. Such cooperation shall include, but not be limited to, the following: A. Providing current and historical records as requested by the City on customer billing (providing computer tapes of all accounts); and B. Maintaining and providing to City as requested Accounts Receivable; and C. Providing operating records needed to provide service to all properties in City (both equipment and staffing requirements). Q. REPORTS REQUIRED 1. The Contractor shall provide the City Manager, at the times and in the form prescribed by the City Manager, such reports with respect to the Contractor's operations as may be reasonably necessary or appropriate to the performance of any of the rights, functions or duties of the City in connection with this Agreement. 2. Such reports shall include, but shall not be limited to the following, which shall be submitted to the City Manager no later than sixty (60) days following the City Manager's request for same: (a) A detailed and complete certified financial statement, of the Contractor, with an opinion prepared by an independent Certified Public Accountant, for the preceding fiscal year. (b) An up-to-date list of all vehicles used for collecting, hauling or disposing of refuse in the City including the make, type, year, license number, identification number and ownership. (c) The names, titles and addresses of the owners, officers, directors and stockholders of the firm. 15 (d) The names and titles of all employees used in providing refuse service for the City. (e) A description of all cases of property damage and personal injury that have occurred while providing refuse service for the City in the last three years. (f) A description of all traffic citations received in the past three years. (g) Workers' Compensation Experience Modification Factor for the current year. (h) Any reports required in association with Section G (4) of this Agreement. 3. Within thirty (30) days after the end of each fiscal year, Contractor shall provide the City with a written report which shall include: (a) An accurate number of residents receiving curbside service. (b) The total number of multi-family units and number of multi-unit dwellings. (c) The total number of bins in use for both single-family and multi-family units. (d) The total number of bins in use for commercial accounts. (e) The total number of roll-off containers delivered and collected during the year. (f) Total tonnage of refuse collected. R. 4. The Contractor shall cooperate with and provide all information sought by City in connection with the preparation and implementation of the waste characterization study and its recycling and source reduction elements. YORKERS' COMPENSATION INSURANCE The contractor shall at all times keep fully insured, at his own expense, all persons employed by him in connection with the performance of this Agreement as required by the provisions of the labor code of the State of California relating to Worker's Compensation and insurance and shall hold the City free and harmless from all liability arising by reason of injuries of any employee of the Contractor incurred in course of employment hereunder. The Contractor shall file and maintain certificates with the City Clerk showing said insurance to be in full force and effect at all times during the course 16 of the Agreement. No work shall be done by the Contractor during any period when he is not covered by insurance as herein required. S. EQUAL OPPORTUNITY EMPLOYMENT In providing refuse service for the City, the Contractor shall not discriminate against any employee or applicant for employment because of race, creed, color, sex, national origin or physical handicap. 1. The Contractor shall take affirmative action to ensure such non- discrimination. 2. The Contractor shall post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nun-discrimination clause. 3. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, sex, national origin or physical handicap. T. RECYCLING 1. During the term of this Agreement, CONTRACTOR shall conduct a curbside residential recycling program'in the City of Rosemead. All residential dwellings on regular curb, alley and backyard service customers for trash pickup shall be part of the program. Such customers shall be provided a once-a-week pickup from curbside of newspapers, glass, cans, P.E.T. and H.D.P.E. plastic containers, placed for collection in the appropriate containers provided by the CITY. Contractor's fees for this service are included in the rates for residential trash collection. Contractor shall provide a program for the separate collection of green waste. 17 • 2. RESIDENTIAL CUSTOMERS' RESPONSIBILITIES. A. Contractor shall deliver, at no additional cost to City or customers, to all residential dwellings on regular curb (i.e. all residences not on bin service) and to all residential dwellings on back-yard (handicapped) service two (2) plastic containers for the collection and placement for removal of recyclable materials (newspapers, glass, cans, P.E.T. plastic beverage containers and green waste as follows: 1 minimum 18-gallon container for commingled recyclable materials (glass, aluminum cans, plastic beverage containers and newspaper) 1 minimum 32-gallon container for green waste B. Residents shall place their recyclables and green waste, in the collection containers, at curbside (or backyard for qualified handicapped residents) on their regular scheduled day for trash collection. 3. REVENUE FROM SALES OF RECYCLABLE MATERIALS. Contractor shall maintain records of the amounts of materials collected and sold and the revenue received for same. Contractor, in partial consideration for the services rendered hereunder, shall be entitled to retain seventy-five per cent (75%) of the net revenue from the sale of recyclable materials. Contractor shall donate a minimum of twenty-five per cent (25%) of the net proceeds from the sale of recyclable materials, collected in the City of Rosemead, to non-profit groups which have service programs in Rosemead and have actively participated in the City's recycling program. Contractor shall provide City with quarterly reports on the program revenue and donations made to community groups. 4. PROMOTION OF PROGRAM. CONTRACTOR shall use its best efforts, in conjunction with CITY, to promote public awareness of and utilization of the program. Contractor shall provide the services of its Educational Resource Specialist as outlined in its proposal. . U. ASSIGNTMENT 1. Contractor shall not assign any portion of the duties to be performed by it pursuant hereto, to any person, without the prior written consent of the City being first obtained. The City shall not unreasonably withhold its consent to any such proposed assignment, provided that such consent shall not be deemed to have 18 been unreasonably withheld if, after a reasonable investigation, the proposed assignee is found by the City not to be financially responsible , or not possessed of sufficient experience or qualifications to perform the obligations of this Agreement. V. RIGHTS RESERVED TO THE CITY 1. At all reasonable times, the Contractor shall permit the City's authorized representatives to examine all property of the Contractor, and to examine and transcribe any and all records kept or maintained by the Contractor under his control which pertain to this Agreement. 2. Neither this Agreement nor any provision hereof shall constitute a waiver or bar to the exercise of any governmental right or power of the City. 3. The City Council may do all things ,vhich are necessary and convenient in the exercise of its jurisdiction under this Agreement, and may determine any question of fact which may arise during the existence of this Agreement. 4. The City Manager is hereby authorized and empowered to adjust, settle, or compromise any controversy or charge arising from the operations of the Contractor under this Agreement, either on behalf of the City, the Contractor, or any customer in the best interest of the public. Either the Contractor, or any member of the public, who may be dissatisfied with any decision of the City Manager, may appeal the matter to the Council for hearing and determination. The Council may accept, reject, or modify the decision of the City Manager, and the Council may adjust, settle, or compromise any controversy or cancel any charge arising from the operations of the Contractor. W. LEGAL REQUIREMENTS & MISCELLANEOUS PROVISIONS 1. The Contractor shall obtain all permits and licenses required by the City, County, State and Federal Governments. The Contractor shall fulfill all reporting requirements to these agencies. 2. Contractor shall comply with all laws, ordinances, rules and regulations of the State, County, City, and all political subdivisions thereof having jurisdiction over work done or to be done under this Contract. Contractor must conform to and abide by all ordinances of the CITY and of the County and of cities through which waste and recyclables are to be hauled or wherein such waste or recyclables may be sold or stored. 3. To the extent not superseded by the specific provisions of this Agreement, the Proposal for The Exclusive Collection, Removal and Disposal of Residential, 19 • ' • Commercial and Industrial Refuse and An Integrated Recycling Program for the City of Rosemead, submitted by Consolidated Disposal service on March 15, 1991 and modified by correspondence from Consolidated Disposal Service dated April 3, 1991, April 17, 1991, April 25, 1991, April 26, 1991 and April 29, 1991. Copies of these documents are attached hereto, collectively referred to as Exhibit "A", and made a part hereof by this reference. 4. The provisions of the Rosemead Municipal Code relating to refuse collection and disposal are hereby incorporated into and made a part of this Agreement, and whenever the provisions of the Code conflict with the terms of this Agreement, the terms of said Code shall supersede the provisions of the Agreement. 5. Time shall be of the essence of this Agreement. The Contractor shall not be relieved of his obligation to comply promptly with any of the provisions of this Agreement by any failure of the City to enforce prompt compliance. 6. All notices required to be given under this Agreement shall be given by placing such notices in the United States mail, postage prepaid, addressed as follows: in the case of notice to the City, City of Rosemead, City Hall, 8838 E. Valley Boulevard, Rosemead, California, 91770 Attention: City Manager. In case of notice to Contractor, CONSOLIDATED DISPOSAL SERVICE, INC., 12235 Los Mews Road, Santa Fe Springs, California 90670 Attention: John A. Telesio, President/CEO. 7. This Agreement shall be binding on, and accrue to the benefit of the heirs, executors, assigns and successors in interest of the parties hereto, subject to the provisions of Section U above. 8. In the event territory is annexed to the City, and if for the three (3) years immediately prior to such annexation, refuse collection services were provided by a refuse collector authorized to perform such services by the local agency having jurisdiction over such territory prior to annexation, then such authorized refuse collector may continue to provide refuse collection service in the territory for up to five (5) years from the date of annexation. Under such circumstances, the annexed territory shall not be deemed a portion of the City for the purpose of this Agreement. If the refuse collector authorized to perform such collection services prior to annexation is the Contractor, then such territory may become a part of the City for purposes of this Agreement. 9. All disputes arising out of this Agreement shall be subject to binding arbitration, conducted in accordance with the provisions of this paragraph. In the event of a dispute concerning the provisions of this Agreement, City shall submit a list of not less than five (5) retired California Superior Court Judges it deems qualified to act as the arbitrator. Contractor shall select one of the retired judges who shall 20 i act as the arbitrator. If the Contractor declines to accept any retired judge on the City's list, the then Presiding Judge of the Superior Court of Los Angeles County, or his or her designee, shall appoint a retired Superior Court Judge who shall act as the arbitrator. The decision of the arbitrator shall be binding on the parties and shall be enforceable as a final judgment of a court of competent jurisdiction. Costs of arbitration incurred pursuant to this section shall be borne equally by the parties. 10. Should litigation including arbitration be reasonably required to enforce any of the provisions of this Agreement, the prevailing party in such litigation shall be entitled to receive an award of the attorney's fees in such amount as may be set in the discretion of the court or arbitrator. The provisions of this paragraph shall survive the termination of this Agreement. 11. Contractor shall provide Cardio-Pulmonary Resuscitation (CPR) training to its on- street personnel who serve Rosemead. X. SEVERABILITY If any section, subsection, sentence, clause or phrase of the Agreement is for any reason held illegal, invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions hereof. Y. EFFECTIVE DATE This Agreement shall become effective and operative on August 1, 1991, and on said date shall supersede all prior agreements heretofore executed by and between the parties concerning any portion of the subject matter hereof, and shall operate as a discharge of all obligations incurred by either party under any agreements thus superseded. Z. RATES RATE STRUCTURE - EFFECTIVE AUGUST 1, 1991 1. SINGLE FAMILY DWELLINGS - RESIDENTIAL CURBSIDE SERVICE Monthly cost per unit for regularly scheduled weekly curbside collection and disposal of residential/household waste, weekly curbside collection of recyclable materials (glass, newspaper, aluminum cans, plastic containers) but excluding such items as appliances, furniture. S 7.85 per month per unit 21 2. SPECIAL QUALIFIED SENIOR CITIZEN HARDSHIP RATE/ FOR RESIDENTIAL CURBSIDE SERVICE: Monthly cost per unit for regularly scheduled weekly curbside collection and disposal of residential/household waste, weekly curbside collection of recyclable materials (glass, newspaper, aluminum cans, plastic containers) but excluding such items as appliances, furniture. S 5.21 per month per unit [subject to verification of eligibility] 3. SPECIAL QUALIFIED HANDICAPPED CITIZEN/BACKYARD COLLECTION RATES FOR SINGLE FAMILY RESIDENCES: Monthly cost per unit for regularly scheduled backyard collection and disposal of residential/household waste, weekly curbside collection of recyclable materials (glass, newspaper, aluminum cans, plastic containers) but excluding such items as appliances, furniture. S 7.85 per month per unit S 5.21 per month per unit if the handicapped individual also qualifies for the senior citizen hardship rate. [subject to verification of eligibility] 4. SPECIAL ONE-TIME PICK-UP COST FOR PICK-UP AND DISPOSAL OF APPLIANCES, FURNITURE AND BULKY ITEMS Not to exceed rate for one-time special pick-up and disposal of appliances, furniture and other bulky items not eligible for regular collection. 510.00 per item. 5. RESIDENTIAL - SPECIAL ONE-TIME DROP-OFF AND COLLECTION OF A 3-CUBIC YARD BIN Rate for one-time drop-off and collection of a 3-cubic yard bin at a residential address. 550.95 per bin, provided bin includes one collection and delivery to the landfill and rental of bin for up to seven (7) days. Additional days and collections require additional fees. 6. RESIDENTIAL - SPECIAL ONE-TIME DROP-OFF AND COLLECTION OF A 10 TO 40-CUBIC YARD "ROLL OFF" CONTAINER Rate for one-time drop-off and collection of a 10 to 40-cubic yard bin at a residential address. $ 143.59 per load (all sizes), plus tipping fees (at actual cost). Loads exceeding seven (7) tons net weight will be subject to a $25/ton surcharge. 7. MULTIPLE-FAMILY DNNELLINGS-DETACHED UNITS ON A SINGLE LOT Monthly cost per unit for regularly scheduled weekly curbside collection and disposal of residential/household waste, excluding such items as appliances, furniture. $ 7.85 per month per first unit. $ 633 per month per each additional unit 8. MULTIPLE FAMILY UNITS - ATTACHED UNITS (APARTMENTS AND CONDOMINIUMS) AND MOBILEHOME PARKS Monthly cost per unit for regularly scheduled weekly curbside collection and disposal of residential/household waste, excluding such items as appliances, furniture. $ 7.85 per month per first unit. $ 5.14 per month per each additional unit NOTE THAT CUSTOMERS IN MULTIPLE RESIDENTIAL CATEGORIES MAY ELECT TO UTILIZE COMMERCIAL SERVICES AND RATES IN LIEU OF RESIDENTIAL SERVICES AND RATES. 23 9. COMMERCIAL ESTABLISHNIENTS - REGULAR REFUSE COLLECTION Rate per month for regularly scheduled pick-up and collection of refuse from business, commercial and industrial establishments. Days refer to the number of pick-ups and collections per week. 3-CUBIC YARD BIN WITHOUT FORKLIFT WITH F/L 1 DAY PICK-UP 2 DAYS PICK-UP 3 DAYS PICK-UP 4 DAYS PICK-UP DAYS PICK-UP 6 DAYS PICK-UP $56.44/mo. $55.66/mo. $116.22/mo $147.00/mo $181.62/mo 5208.0-5/mo $62.09/mo. $94.23/mo. $127.84/mo $161.71/mo $199.78/mo $228.86/mo 1 1/2-CUBIC YARD BIN 1' `ITHOUT FORKLIFT WITH F/L 1 DAY PICK-UP $37.98/mo. $41.78/mo. 10. COMMERCIAL - ONE-TIME DROP-OFF AND COLLECTION OF A 3-CUBIC YARD BIN Rate for one-time drop-off and collection of a 3-cubic yard bin at a commercial address. $68.71 per bin, provided bin includes one collection and delivery to the landfill and rental of bin for up to seven (7) days. Additional days and collections require additional fees. 24 11. COMMERCIAL - SPECIAL ONE-TIME DROP-OFF AND COLLECTION OF A 10 TO 40-CUBIC YARD "ROLL OFF" CONTAINER Rate for one-time drop-off and collection of a 10 to 40-cubic yard bin at a commercial address. $220.86 per load (all sizes) including tipping charges; 7 ton limit. Over 7 tons net per load, subject to $25.00 per ton surcharge. 12. COMMERCIAL - SPECIAL BARREL SERVICE FOR QUALIFIED COMMERCIAL, LIA41TED USE CUSTOMERS Indicate rate for once a week pick-up and collection of a maximum of two not-to-exceed 35 gallon barrels. [Note: Only 48 commercial establishments entitled to this reduced- level service] 538.43 per month. THESE RATES INCLUDE FOUR (4) CITY-\VIDE PICK-UP DAYS FOR LARGE BULKY ITEMS, SUCH AS APPLIANCES AND FURNITURE, WHICH SHALL BE PICKED-UP AND DISPOSED OF ON THE DESIGNATED DAYS, WITHOUT ADDITIONAL CHARGE TO THE CUSTOMER OR CITY. IN WITNESS WHEREOF, the City by order of its City Council and the Contractor by order of its Board of Directors, have caused this Agreement to be executed on the day and year first written above. CITY OF ROSEMEAD By: / Ja T. mperial, Mayor 25 • Attest: I-) , '7 i c.-,/ City Clerk L CONSOLIDATED DISPOSAL SERVICE, INC. a California corporation John 4ATP-IcCsi.,?~,,i ent/CEO 26 40 . FIRST AMENDMENT TO FRANCHISE AGREEMENT WITH CONSOLIDATED DISPOSAL SERVICE, INC. THIS FIRST AMENDMENT to AGREEMENT is made and entered into effective, the 11th day of January, 1994, by and between the CITY OF ROSEMEAD, a municipal corporation, hereinafter referred to as City, and CONSOLIDATED DISPOSAL SERVICE, Inc., hereinafter designated as Contractor. The franchise agreement dated August 1, 1991 between the parties hereto is hereby amended as follows: 1. Section B Work to be Done, Paragraph 1, is hereby amended to read as follows: B. WOR' TO BE nOVP The work to be done under this Agreement shall include the furnishing of all labor, material, equipment and expenses necessary to perform the following minimum services: 1. Collection, hauling and disposal of refuse from the premises of any and all residents and businesses in the City, at the regularly scheduled intervals, and at the rates as provided herein. Said work shall include regularly scheduled pick-up of refuse once a week from curb or alley. Contractor is the exclusive franchise provider and the only hauler authorized to provide regularly scheduled and one-time special container (bin or roll-off) service to any residence or business or construction site requesting such service, provided however that any contractor or other person may haul, in their own trucks, and properly dispose of any debris from a jobsite in the City. If contractor or other person utilizes a waste hauling service, he must utilize the services of the City's franchisee. 2. Section L Performance Bond is hereby amended to read as 1 01 1 Vw$ L. PERFORMANCE BOND 1. Upon being awarded approval for the collection, removal and disposal of refuse in the City, the Contractor shall file with the City Clerk and shall thereafter during the entire term of the Agreement maintain in full force and effect a corporate surety bond or other adequate surety agreement in a form satisfactory to the City Attorney in the amount of One Hundred Thousand Dollars ($100,000) for the Contractor's faithful performance of this agreement. 2. Said bond shall be so conditioned that in the event that the Contractor shall fail to comply with any one or more of the provisions of the Agreement, then there shall he recoverable jointly and severally.from the Contractor and surety any damages or loss, or costs suffered or incurred by the City as a result thereof, including attorney's fees and costs of any action or proceeding, and the full amount of any compensation, indemnification, cost of removal or abandonment of any property or other cost which maybe in default, up to the full principal amount of such bond. 3. Said bond shall not be canceled, altered or allowed to lapse without at least thirty (30) days' prior written notice to the City Clerk by the surety. 4. Failure to file or maintain such a bond shall be deemed a breach of the Agreement, and shall be.grounds to terminate the Agreement by the City Council. IN WITNESS WHEREOF, the City by order of its City Council and the Contractor by order of its Board of Directors, have caused this Agreement to be executed on the day and year first written above. CIT By: Attest: City Clerk CONSOLIDATED DISPOSAL SERVICE, INC. a Cali.fnrnla corporation. John A. Telesio, President/CEO Attachment A Page 1 City of Rosemead Rate Adjustment Request 1995 - 1996 Residential Rates: Current Rate for Single Family Dwelling: New Rate: Current Rate for Special Qualified Senior Citizen New Rate: Current Rate for Special Qualified Handicapped: Backyard Service: New Rate: $ 8.49/mo $ 8.75/m o $ 5.64/mo $ 5.81/mo $ 8.49/mo $ 8.75/mo Current Rate for Bulky Item Pick-up: New Rate: Current Rate for Residential-One-Time Drop-off and Collection of 3yd Bin One dump or 7 days: New Rate: Current Rate for Residential-One-Time Drop-off and Collection of a "Roll-off Bin": New Rate: Current Rate for Multi-Family-Detached For First Unit: New Rate: Current Rate for Multi-Family-Detached For Each Additional Unit: New Rate: Current Rate for Multi-Family-Attached For First Unit: New Rate: $ 10.82/mo $ 11.15/mo $ 55.13/mo $ 56.831mo (Dump-12.21, Bin-$44.61) $155.36/mo $160.14/mo Plus tipping fees 7 ton limit $27.88/ton over $ 8.49/mo $ 8.75/m o $ 6.85/mo $ 7.06/mo $ 8.49/mo $ 8.75/m o Current Rate for Multi-Family-Attached :.:4. Commercial Rates: Attachment A Page 2 The following commercial rates include the 3.075% rate adjustment: 3 Cubic Yard Bins 1 112 Cubic Yard Bin CURRENT RATE NEW RATE '1tYifi~ouf' z Wtt F~rrich#t Farkitf` 1~nrcdtvriit 1 Da P/U $ 45.20 $ 41.09 1 Da P/U $ 42.35 $ 46.59 Current Rate for One-Time Drop-off: 3 Cubic Yard Bin Temporary: New Rate: Current Rate for One-Time Drop-off: Roll-off: New Rate: $ 74.34 (Dump-$55.76, Bin-$20.86) $ 76.63 $238.95 $246.30 Current Rate for Special Barrel Service: New Rate: (Maximum 2 - 35 gal cans 1 x week) $ 41.58/mo $ 42.86/m o NOTE: These rates do not include the $.76 monthly residential and 7% monthly commercial surcharge CURRENT RATE NEW RATE • LOS ANGELES COUNP RESIDENTIAL SOLID WASTE COLLECTION RATE SURVEY Sorted From Lowest to Highest on Base Rate Revised Draft October 7, 2994 Page 1 of 2 Base Rate Paid to Haider Orice lerWeek Co]]ec~ fion Industry Industry Disposal $0.00 $0.00 $0.00 Irwindale Western Waste Industries $0.00 $0.00 $0.00 Paramount Metropolitan 57.6S $0.97 $6.65 Rosemead Consolidated Disposal Service $5.16 $0.76 $6.94 Cerritos CALSAN -$S412 $0.25. - $6.67 1AJest Holl\~vood 1Naste Mgmt, Inc (>4 units) $5.76 $0.00 $S.76 Manhattan Beach Western Waste Industries $S.76 $2.47 $11.25 Hermosa Beach Browning Ferris lndustnes $9.05 $1.07 $10.09 Monrovia NEWCO $9.09 $1.60 510.59 Duarte NEWCO $9.11 $0.69 $9.60 El Segundo Zakaroff $9.12 $0.00 $9.12 L. Mirada Consolidated Disposal Services 5931 9 $0.55 $9.92 Hunthmcton Park Western Waste Industries 5937 $036 $9.73 Do.,nep' CAL5AN $952 $1.45 $70.97 Cudah~~ Consolidated Disposal $9.62 $0.61 $10.73 South Gate Western Waste Industries $9.70 $1.71 $11 al Azusa Westem Disposal $9.77 $0.74 $10.45 Inpewood Western VIaste Industries S9.99 $1.21 $11.20 Glendale Cit)' of Glendale $10.10 $0.00 $10.10 Claremont City of Claremont S30.2i $1.12 $]1.23 La Verne WMI San Gabriel/Pomona $10.11 $135 $11.46 Arcadia New,co $10.14 $030 $10.44 L. Puente Valley Vista/ Wh9 $10.21 $1.55 $12.06 Llm.vood Western Waste Industries $1035 52.11 $12.66 Sipal Hill EDCO $10.60 $0.00 $10.60 Montebello Athens Disposal $10.61 $1.39 512.00 Lakewood BZ Disposal 510.65 $0.25 $10.90 Bai dwin Park Waste Management, Inc. 510.67 51.46 $12.13 Santa Fe Springs 5 permitted haulers $10.65 50.22 $10.90 Bellflower CALSAN, Inc. $10.75 $0.45 $11.20 Walnut 1NM7 of San Gabriel/Pomona $11.01 52?' $13.23 Artesia Consolidated Disposal Services 511.15 50.00 $11.15 Pico Rivera metropolitan $11.15 $0.57 $11.72 Alhambra Athens Disposal $11.19 50.75 577.97 CDmDton Murcole, Inc. 511.43 $1.15 $22.55 San Dimas l4°aste Management Inc. 511.44 52.09 $13.53 Monterey Park Athens Disposal $11.59 50.93 $12.52 West Covina West Covina Disposal (Athens) 511.63 51.43 $13.06 Redondo Beach Western 1S°aste Industries $11.69 $0.94 $12.63 MaIMood Consolidated Disposal Service $11.90 $0.00 $11.90 Glendora Athen's Disposal $1199 $1.13 $13.12 Pomona City of Pomona $12.05 $0.00 $12.05 Sierra Madre Western Waste Industries $12.11 $1.21 S13.32 Covina Covina Disposal (Athens) $12.21 $0.75 $12.99 The cities of Avalon, Bell Gardens, Hawthorne, Hidden Hills, and SNestlake Village did not participate. ia) Excludes street sweeping and other non-solid waste related fees. Cn) Includes franchise fees, AB 939 fees, household hazardous waste fees, administration fees, and other fees retained by the City. • ! LOS ANGELES COUN* • RESIDENTIAL SOLID WASTE COLLECTION RATE SURVEY Sorted From Lowest to Highest on Base Rate Revised Draft October 7, 1994 Page 2 of 2 Total Monthly Rate M s ` 'Once Per week collection (continued) - Hawaiian Gardens Consolidated Disposal Seri-ice $12.25 50.25 $12.50 Norwalk Consolidated Disp. Svs/jackson $32.45 $0.00 512.45 Commerce Metropolitan 51250 $0.00 512.50 Whittier Consolidated; WW1; City of Whittier 512.78 $0.53 $13.31 Diamond Bar Waste Mgmt, Inc. and Western Waste 512.90 $0.35 $13.25 Lancaster WMI & Antelope Valley $13.16 51.34 $1450 Palmdale Arklin Brothers 513.18 51.07 $14.25 Gardena Western Waste Bidustries $13.40 50.00 $13.40 Torrance City of Torrance $13.45 $0.20 513.65 Carson Western Waste Industries $13.70 $0.00 S13-70 Bradbury NEwICO 513.95 $0.73 514.66 San Gabriel San Gabriel Disposal Company $14.10 so. 00 $14.10 Bell Consolidated Disposal Services 514.70 61.07 575.77 San Fernando N4ISSING 614.90 $1.00 615.90 Long Beads City of Long Beach $15.22 $0.00 $75.22 Culver City Citcof Culver Citl, 617.22 60.00 $17.22 Santa Clarita Atlas; Blue Barrel, Santa Clarita Disp. 617.40 61.93 $19.33 Rancho Palos Verdes Waste Management, Inc. 518.24 $1.56 $19.82 Santa Monica City of Santa Moncia $16.51 60.00 616.51 Palos Verdes Estates Browrdng Ferris Industries $18.71 54.05 $22.76 Los Angeles City of Los Angeles 519.00 $0.00 619.00 Burbank City of Burbank $20.25 $0.00 $20.25 South Pasadena South Pasadena Disposal (Athens) $20.48 $4.03 524.51 Pasadena City of Pasadena 521.23 $0.00 521.23 Beveriy Hills City of Beverly Hills S22.66 60.00 5221.66 San Marino Open Competition 525.05 $3.95 529.00 Agoura ]ills Hillside Rubbish & Las Virgenes Disp. Not regulated $0.50 Not regulated Calabasas 3 permitted haulers Not regulated $0.50 Not regulated La Habra Heights Open Competition Not regulated $0.00 Not regulated LaCanada/Fluitridge 2 permitted haulers Not regulated $0.00. Not regulated Malibu Open Competition Not regulated $0.60 Not regulated South El Monte Open Competition - Not regulated $0.00 Not regulated Twice Per. Week Collection El Monte Waste Management, Inc. $10.28 51.56 $11.64 Lonvta John M. Shubin 512.62 $0.68 $13.50 Lawndale Western Waste Industries $13.13 $0.81 $13.94 Temple City Community Disposal $13.47 $1.70 515.17 Rolling Hills Estates Browning-Ferris Lidustries $16.98 $1.89 $18.67 Rolling Hills Browning Ferris Industries 553.75 $0.00 $53.T Vernon Open Competition Not regulated $0.00 Not regulated The cities of Avalon, Bell Gardens, Hawthorne, Hidden Hills, and Westlake Village did not participate. (a) Excludes street sweeping mid other non-solid waste related fees. 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Fx , y C~ O G n n ° n h ~ n ~ z O ~ O A y ~ m 07 r ~ ~ V ^ N O ~ N ~A T m m ~ a ~ S 2 0 a o < o 7 O m a a m a s 0 m a c T a n F 2 m 7 n d D s a L O Cl) a z 0 M r n n 0 c z H O~ D ~ y rp v. 07 n y V ~ N d N W • • LOS ANGELES COUNT • COMMERCIAL SOLID WASTE COLLECTION RATE SURVEY 3-CUBIC YARD BIN COLLECTED ONCE PER WEEK Sorted From Lowest to Highest on Base Rate Revised Draft October 7, 1994 Page 1 of 2 UM-1-T-9 I F1 Hawaiian Gardens Consolidated Disposal Service $34.31 $0.00 $34.31 Diamond Bar Waste Mgmt. & Western Waste 550.00 56.00 $56.00 Cerritos CALSAN :51.65 54.51 556.36 La Puente Valley Vista/14'MI 554.74 54.76 $59.50 (32) Rosemead Consolidated Disposal Service 555.61 $4.19 $59.80 (33) Industry Industry Disposal - 556.00 $6.22 $6222 Walnut WMI San Gabriel/Pomona _ 556.26 $1033 $66.61 Lancaster WMI Antelope Valley 556.67 - $5.13 $62.00 Pico Rivera Metropolitan 556.90 53.10 562.00 Paramount Metropolitan Waste Disposal $59.67 $6.50 $66.17 Azusa Western Disposal $60.90 $3.20 $64.10 San Marino Open Competition 563.65 $3.35 567.00 (34) La Mirada Metropolitan Waste 6 Consolidated $63.91 56.32 570.23 Bellflower CAI-SAN, Inc. 564.72 52.70 56742 Covina Covina Disp. (Athen's) 564.86 $4.14 569.00 Redondo Beach Western Waste Industries 564.66 $2.76 567.62 Hermosa Beach Browning Ferris Industries 565.34 $7.26 $72.60 Inglewood Western Waste Industries $66.54 528.25 594.79 South Gate Western Waste Industries 567.01 511.83 578.84 South Pasadena South Pasadena Disposal (Athens) 566.43 511.69 560.12 Palmdale A klin Brothers 566.45 55.55 574.00 West Covina West Covina Disposal (Athens) $69.26 59.79 579.05 Temple City Community Disposal 569346 515.93 $85.29 Glendale City competes with private haulers 569.45 50.00 569.45 (35) Baldwin Park Waste Management, Inc. 571.10 57.90 $79.00 Sierra Madre Western Waste Industries $71.36 $7.14 576.50 Lakewood BZ Disposal $71.40 $0.00 $71.40 Norwalk Consolidated Disp. Svs/Jackson $72.47 53.81 - 576.28 Lynwood Western Waste Industries $7557 514.96 $9053 Manhattan Beach Western Waste Industries 575.66 $9.35 $85.01 Artesia Consolidated Disposal Services $7757 51.58 $79.15 Duarte Newco 580.01 $0.61 $80.62 Pasadena - City competes with private haulers 561.03 $0.00 $81.03 (36) Signal Hill ED-CO 562.00 512.77 594.77 Whittier Peoples Disp; W'W7; City of Whittier $82.46 $6.21 566.67 (37) Carson Westem Waste lndustrie $83.50 50.00 S83.50 San Gabriel San Gabriel Disposal Compam' $84.05 $0.00 $84.05 Glendora Athen's Disposal 564.26 $0.00 - $84.26 Culver City City. of Culver City $85.87 $0.00 $85.87 Compton Western Waste Industries $87.57 $5.59 $93.16 San Dimas Waste Management, Inc. $97.50 $18.52 5116.02 Huntington Park Hgton Park Disposal r 597.96 $0.36 $96.32 Burbank C ih~ competes with private haulers 5119.51 $0.00 $119.51 (36) The cities of Avalon, Bell Gardens, Hawthorne, Hidden Hills, and Westlake Village did not participate. See attached notes. (a) Excludes street sweeping and other non-solid waste related fees. (b) Includes franchise fees, AB 939 fees, household hazardous waste fees, administration fees, and other fees retained by the City. • • LOS ANGELES COUNT • Revised Draft 7, 1994 2 2 of 2 COMMERCIAL SOLID WASTE COLLECTION RATE SURVEY October Page of 2 3-CUBIC YARD BIN COLLECTED ONCE PER WEEK Sorted From Lowest to Highest on Base Rate J Beverly Hills City of Beverly Hills 5132.60 $15.00 S150 60 Bradbury No commercial business in City N/A N/A N/A Claremont L H Municipal N/A NIA N/A (39) a abra Heights No commercial business in City N/A N/A Long Beach City competes with private haulers N/A $0 00 N/A Rolling Hills Citv has no commercial business N/A . N/A N/A (40) Santa Monica City competes with private haulers N/A - $0 00 N/A Agoura Hits Open Competition Not regulated ° . $0.00 N/A Not regulated (40) Ahambra Open Competition OP N ot regulated Not 50.00 ° Not regulated Arcadia B Open Competition (5permitted haulers) Not regulated Varies Not regulated (41) ell Calabasas Open Competition Not regulated o $0.00 Not regulated Open Competition (ipennitted haulers) Not regulated $0.00 Not regulated Commerce C Open Competition (44 licensed haulers) Not regulated Varies Not regulated (42) udahy Open Competition (9 Haulers) Not regulated 0 50.00 Not regulated Downey } El Mo t Open Competition Not regulated 50.00 Not regulated n e El Se~do Segundo Open Competition Open Competition Not regulated o N $0.00 Notregulat Gardena Open Competition (33 licensed haulers) ot regulated Not regulated 50.00 50 00 Not regulated N Irwindale L Non-exclusive franchise (5 haulers) Not regulated . $0.00 ot regulated Not regulated a Canada /Fiintridge L Open Comp. (6 permitted haulers) Not regulated $0.00 Notregulated a Verne WMI San Gabriel/Pomona Not regulated 51.25 Not regulated Lawndale L Open Competition Not regulated 50.00 Not regulated omita L Open Competition Not regulated 50.00 Not regulated os .9ngeles Open Competition (private haulers) Notregulated 000 ° Not regulated Malibu Open Competition (6 haulers) Not regulated S1.50 Not regulated Maywood Monro i Open Competition Not regulated $0.00 ° Not regulated v a Montebell Open Competition (IS haulers) Not regulated Varies Not regulated (43) o Monterey Park Open Competition Open Competition Not regulated N 50.00 Not regulated Palos Verdes Estates Aces Roll-Off; 1N1A2; BFI ot regulated Not regulated $0.00 $0 00 Not regulated Pomona Open Competition Not regulated ° . 50.00 Not regulated Not regulated Rancho Palos Verdes R Non-exclusive franchise (9 haulers) Not regulated $0.00 Not regulated olling Hills Estates Open Competition Not regulated $0.00 Not regulated San Fernando Open Competition (license/permitreq'd) Not regulated ° S1S0 Not regulated South El Monte Open Competition Not regulated SO.DO Not re ulated Torrance Verno Open Competition Notre fated gu $0.00 g Not regulated ° n West Hollywood Open Competition Open Competition regulated Not N 50.00 Not reo fated Santa Clarita Ades; Blue Barrel; Santa Clarita Disposal ot regulated Rate Band 50.00 Not regulated Santa Fe Springs 5 permitted haulers Rate Band Varies r V i Rate Band (44) ar es Rate Band (44) me cities of Avalon, Bell Gardens, Hawthorne, Hidden Hills, and Westlake Village did not participate. See attached notes. (a) Excludes street sweeping and other non-solid waste related fees. (b) Includes franchise fees, AB 939 fees, household hazardous waste fees, administration fees, and other fees retained by the City. -ILI ~ ~ vQv .p..~ vvv v v ~ ~ v~v v v v v v ~ a n n•o O rv O C n v m m 'o n O o T 3 W o S T O d n au F 7 D o D B' •O m I C N C N ry N •~i CY 7 fD ~Ci. E~ ^y O O d v m G~ d i m m m S P. d d m 0. 0. y m n m~ P' S m ~ S m N R o 0 n0 w m r<o m m~ S .n. ^ d O H A ~ ~ G S m S a o-~ a O n W O a p S 0 m O n m o m m_ w T o m w d d n ,n ~o T O po m o C) A m in 0 n N R S o .Q C 'p' ¢ .o v0, a R 7 j y d `G O OT m `G 0m yi n a c w N O.^o m w 0. y p• m G N o m ^m y 7 m .d d 7 mo S Q w oo v~ : p 00 d a chi ~j ^ in n d m .O-. ? v,' ` O y 7 vii T b0 N o 0 d ro 7 7 a 5 O 7 C _ ^r1 CJ 2< p y 2 ^ m O Q R D 7' y p' O d F 70'0 'Q " O y C A N d rp R m p^ 6. 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S~ m 3 O yj a A~ 7~ n ~ S O S r-+ n m p, O~ S R~ O 9 C ~ m o ~ o ~ ? ~ o f 9 0 m 0;'a ~ ~ ~o ~ n O N b T o •mi y vpi V+ p m Qry ~ ; y ~ ~ N a .c r O z r m n 0 C z Q ~ O m C y ti m V a• N d ~ a 0 0 MOTION BY COUNCILMAN BRUESCH, SECOND BY COUNCILMAN VASQUEZ that the foregoing items on the Consent Calendar be approved. Vote resulted: Yes: Vasquez, Taylor, Clark, Bruesch, Imperial No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. CC-B ACCEPTANCE OF STREET EASEMENTS FOR HIGHCLIFF STREET RECONSTRUCTION PROJECT Juan Nunez, 2703 Del Mar, Rosemead, asked if these agreements involve building walls around the perimeter of the property as discussed at a previous Council meeting. Councilman Taylor responded that the right-of-way agreements replaces the existing fences. MOTION BY COUNCILMAN TAYLOR, SECOND BY COUNCILMAN VASQUEZ that the Council accept the attached easement deed and direct the City Clerk to record the deed together with the certification of acceptance and authorize the City Manager to execute the Right-of-Way Agreement on behalf of the City. Vote resulted: Yes: Vasquez, Taylor, Clark, Bruesch, Imperial No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. V. MATTERS FOR DISCUSSION AND ACTION A. SELECTION OF DATE FOR PLANNING COMMISSION INTERVIEWS After discussion, it was decided to hold the Planning Commission interviews on Tuesday, July 16, 1996, beginning at 6:00 p.m. CONSIDERATION OF RENEWAL OF REFUSE CONTRACT BETWEEN CITY AND CONSOLIDATED DISPOSAL SERVICE - VERBATIM DIALOGUE BEGINS: MAYOR CLARK: Item 5B.- Consideration of Renewal of Refuse Contract 7etween City and Consolidated. FRANK TRIPEPI, CITY MANAGER: Honorable Mayor and members of the Council. You have received before, you a proposal request from the present contractor, Consolidated, to extend disposal seivices to the City of Rosemead. The City Attorney and I have gone through this proposal in detail. We have included some of the existing contract and also in the attachment is the residential solid waste ...survey that shows rates of other areas and Rosemead certainly is, from the survey, among the lowest of any ciiyaround. And-if the Council is so we recommend that you approve the attached document. This is franchise with CDS and authorize the Mayor to execute the document, and the contractor is here this evening to answer any questions. . COUNCILMAN TAYLOR: Madam Mayor. Mr. Tripepi mentioned to me two weeks ago that this would be coming before us. I got the impression that it was an extension for another year of the existing contract, basically, rather than putting it out to bid. After reading and reviewing it, I find too many questionable sections in-here that I'd like to get some answers CC 6-25-96 Page :4 • • • • on it before we vote on it. Starting with Page 1 of the cover letter - the Evergreen Clause- .."CDS is requesting an "evergreen clause" in the agreement. That clause states quite simply that the contractor is granted a one-year extension to the agreement annually so that the term of the agreement shall remain constant at five-years." As soon as we approve this, the way I interpret that is that we go for one-year and we are automatically saying that this is a five-year contract... "For example, on August 1, 1997, a one-year extension of the agreement would automatically take place. On August 1, 1998, another one-year extension would be granted, and every year thereafter until the City states its intent to sever the agreement at the end of the then current five-year term." By approving this, it basically is a five-year extension. Is that correct. ROBERT KRESS, CITY ATTORNEY: It's a five-year extension and elsewhere in the document it states that there is an initial term of five-years, that for each one-year that is served, unless the Council takes action to send a Notice of Termination of the Evergreen Clause, one year extension is added. This would be, if adopted this evening, a five-year deal. You could, tomorrow, if you choose, send a Notice of Termination of the Evergreen Clause and it would make this a single five-year term. If you don't do that, one year passes, then from that point in time, it would again be a five-year deal. What it really means is that for the future, as presently drafted, the Council would need to give a five-year notice to terminate this agreement. COUNCILMAN BRUESCH: Madam Mayor. 1 can see the purpose, the monetary, not to lessen Gary's thoughts. I can see the reason for that. In this day and age for a clause like this over the issue, time that we that have to go into this new look. Looking at the trade papers, I realize that the multi-cost ...it's going to cost the contractor, or any contractor for that matter, millions of dollars, they need to have some kind of guarantee that their franchises, that there would be a good return on this. I would like to know if its passible after the initial five year Evergreen, that it would be cut back to three years so that we would do what we've done in past, do a three year time period. I think that is what we do with other contractors. So it comes back to us in 1998 so that in three years we can go out to contract to bid again. Would that possible? _ TRIPEPI: Is that agreeable, John? Initially you have a five year, they're talking about going to three. JOHN TELESIO, PRESIDENT, CONSOLIDATED DISPOSAL SERVICE: Madam Mayor and members of the Council, it's not for a moment that I want to appear ungrateful. I appreciate any type of extension you can afford us, but if I can share with you from our perspective what this represents. Five years, although it may seem like so far in the future, in the context of the renewal at least in contract, it's actually a very short term. In fact, of all of the franchises that we at Consolidated,right now holds twelve franchises, exclusive franchises. This would the shortest franchise agreement that we have - on an-Evergreen basis. And for this very reason, as Councilman Bruesch has pointed out, we have an on-going need to, basically, recapitalize, all the time. We just have to do that. We can't continue to run the vehicles at the cost that they are. They are beaten to death just by the nature of the vehicle. They have a lot of hydraulics, they are heavy. You can't help it. There is an on going capital need. And, then, what I want to talk to you about here really enhances the automation and these type of things. So, not only are we talking about the MRF, which is a huge capital outlay, but we're also talking about tremendous outlay for the cans, the automated containers,, which are very nice, the Cadillac type of containers. And, they are actually very expensive, about $50 to $60 each. They have to be replaced on an on-going basis. And, as I said, I don't want to appear not to appreciate your offer, but please . And that's why when we approached this renewal of franchise, we are seeking it in conjunction with the Evergreen: Basically, it will be all automatic, self-extending, just for a year each time. This is the shortest. I don't want to appear negative, but it would be very difficult, three years isn't very long. We would appreciate it if it would be five and that's not unreasonable if you do a survey, what is a standard term. Not only, with all the other companies that have this, other regional carriers have the same magnitude in costs and responsiblities. BRUESCH: Isn't it true that most of these Evergreens are re-negotiated on the basis of the MRFing facilities . What the original Test is and the MRF when you go back to your normal cost of the investment in trucks. CC 6-25-96 Page A5 TELESIO: Well, Sir. That's actually... that's become an additional motivation. But, not necessarily as I stated. Some of our franchises that have this exact same feature data back twenty years, I'm serious. It's become ...I can name two or three, Santa Fe Springs since 1960 has had a ten year agreement franchise for years. As long as we perform and we have demonstrated that we can get the job done, we have an Evergreen clause and we've had it for years. In this case, the idea of the capital outlay which is required for MRF is just an additional motivation. It really goes a lot deeper than that. That happens to be one area that Larry works with, he's here everyday. You've heard from the citizenry, from the state legislature and you know your own sense of responsiblity, recycling is important. Now we need to find an economic way to do it, MRFing is the way to do it, most economic way to do it. But, it requires a huge cash outlay - millions of dollars outlay. So that's just another motivation. But, actually sir, it goes much deeper. It has to do with the basic fundamental delivery of the service. TAYLOR: Madam Mayor. You mentioned you have twelve other cities. What cities are those? TELESIO: Artesia, Avalon, Bell, Cudahy, Hawaiian Gardens, La Mirada, Naples. Norwalk, Rosemead, South El Monte, Santa Fe Springs, South El Monte and Whittier. TAYLOR: Have we made a comparison of the rates of those cities, those twelve cities compared to Rosemead... those twelve in comparison to Rosemead? Just strictly those twelve? COUNCILMAN VASQUEZ: That's what I'm looking for. TRIPEPI: Which cities, as an example, Mr. Taylor. Clark: Bell TAPE BLANK FOR APPROXIMATELY 20 SECONDS Time it tools for Councilman Taylor ' to turn' his tape over. TAYLOR: How much is that, what page is that? So Bell is paying almost double our rate and they have automated service? TRIPEPI: They automated, John? TELESIO: They will be. TAYLOR: They are not now, but they will be? How about Artesia. TRIPEPI: Artesia pays $11.15 for automated service. TELESIO: If I may, Gary. The rates are definitely more affordable. If you look at personal survey among all of the twelve cities, you'll find the rates are very stable. TRIPEPI: There are only two cities lower, Mr. Taylor, they don't pay at all. Those-services are picked up by.... TAYLOR: I'm not against some increase, that's reasonable. I have some other questions I'd like to continue on here. On page 2. it states - of more importance this section also includes language stating, "upon commencement of the Material Recovery Facility (MRF) operations, a separate formula shall be set forth which takes into account the disproportionate"...it doesn't say set forth which takes into account..."disposal costs associated". It states "disproportional", and I'll read a couple more items. That sounds to me like its kind of unknown. There's got to be... BRUESCH: Where is it? CC 6-25-96 Page k6 - t' TAYLOR: On Page 2., the second paragraph. The summary of it, then in the contract there's some items there that I'd like clarified. But it states that a separate formula shall be set forth. What is this formula? And how are the primary ...the businesses are the ones that are going to get this extra charge. Is that correct? The residential rate is not going to be effected too much by this. TELESIO: I'm going to have Enrique Vasquez our Vice President speak. ENRIQUE VASQUEZ, VICE-PRESIDENT, CDS. In reference there to the formula specific, if you are familiar with the existing contract, there is a portion of the range for disposal and a portion for collection. Historically, that distribution has been pretty stable. As disposal costs have increased, that has changed somewhat. When we go to MRFing, the proportion, the relationship changes dramatically, about 50% of the costs are for taking to the MRF, the disposal, 50% of the collection. If we were to retain the old relationships it could not account for the higher proportion of the cost of handling the waste. TAYLOR: What is the old relationship, in perspective? E. VASQUEZ: It's been in between 25 and 30% disposal, which will include 70-75% collection. TAYLOR: So, they are still going to have the 75% collection? E. VASQUEZ: For residential it would be 70-30, and would retain that. As long as it doesn't go to a MRF, and it's not proposed to at this time. TAYLOR: What happens to our businessman. I get this as it's primarily going to hit the businessmen, August 1 st of this year. E. VASQUEZ: . The initial step would be a recycling campaign. Phase I would start as soon as August 1st. We would start distributing materials, Consolidated can offer staff to go into. businesses and offer them technical advice on setting up recycling programs on identifying materials that would qualify or be candidates for recycling, full-service offered on an individual basis. Then as we see the results come back it could take three months, six months, depending on the responses of the business community, the next phase as we move forward and we happen to know about AB 939 and certainly the goals that they have, the first phase would not be sufficient, in our opinion, to divert enough material to reach the goals. The next step is actually a MRFing step. At that point we could, sometime in the future, depending on the rates that are being charged at. the MRF facilities in the vicinity and then we would have to discuss what those rates would be in terms of.... TAYLOR: Then we would have to discuss it. So it is open-ended. KRESS: Right. May I just interject here. I'm reading from Page 7. of the amendments which deals with this issue. It says, "An implementation plan and initial rate schedule for commercial accounts with Materials Recovery Service shall be subject to the City Council's review and approval". When we drafted this, not knowing what the numbers are, but requiring them to come before the Council for review of that formula and initial rate instruction., TAYLOR: OK. Let's go back to Page 2., regarding what Mr. Kress just read. Of more importance, this section also includes language stating that-.."Upon commencement of the Material Recovery Facility operations, a -separate formula shall be set forth which takes into account the disproportionate disposal costs associated with commercial Material Recovery Facility serviced account". In essence, this clause is an "agreement to agree" and that in parenthesis or quotation marks. In essence this clause is an "agreement to agree" at a later date. So even though it's going to come back to us with approval and such, I question how much we can say no to it. Continuing this, "As indicated in the attached proposal, CDS is planning to utilize a MRF in order to undertake a viable commercial recycling effort". Again, it states "commercial recycling effort and meet the diversion requirements of AB 939". This "agreement to agree" at a later date, this contract is on a one-year renewal, automatically CC 6-25-96 Page k7 J, giving them a five-year renewal every time we give it one year. But this "agreement to agree", I'll come back to that later. Going down to item No. 3, Refuse Containers..."In its proposal, COS seeks to implement an automated collection program by December 1, 1996. In so doing, they would distribute a single 100 gallon container to be used in the program to each household in the City. Should a resident require additional containers, they would be charged $1.50 each month for each additional container. There would no cost, of course, for a replacement container. As proposed, no additional containers of refuse would be collected by COS once the program is underway". What happens to the greenwaste as far as the bags and boxes that are put out. TRIPEPI: They will service those. TAYLOR: OK. "That, of course, does not include greenwaste and recyclable materials currently collected at curbside. Please note that COS included in its proposal a brochure for the 100 gallon containers to be used in the automated collection program". MAYOR PRO TEM JAY IMPERIAL: Madam Mayor. My turn now. Let me say this. My memory is not so short that it wasn't so long ago that we sat here with nine people, all waiting to knife each other, I think, to get this contract. The best contractor that came up was this gentleman that is sitting right here. From the time that we've had him, and I wouldn't want to go back to that nine thing again because one or two decided they wanted to sue us because they didn't get the contract. The time that we've had his contract here, this man has been nothing but honest. He went overboard to do his job in this City and I think, myself, that we can stand here and pick on this all day long. People do that with the Constitution. I think we've gotten good service, I think this is an excellent contract, and I think it deserves some kind of a vote. TAYLOR: All right. I'd like to continue. Going over to page 2, collection costs... page 2 KRESS: You are now on page two of the Amendment. CLARK:-Gary, what was your problem with the containers? TAYLOR: I'll get to that. Now we're into the agreement, that was the summary of what happens. Now I want a clarification, it says ..."if the containers leak or are damaged, that the homeowner will buy them", I want that clarified, what it means. O.k., I'll go on through with it. Going to page 2 of the Franchise Agreement. First item - "Collection Costs. The Collection Cost component consists of the contractors cast for the collection and hauling of the waste". OK, "Collection Cost Rate Freeze. Contractor agrees that there will be no increase in the collection cost component for residential customers effective prior to August 1, 1997." What happens to all the residential, excuse me, the commercial customers? What happens to all of our businesses in the community? BRUESCH: Could I make a comment on that? Looking again at... what has happened after 939 except for your large very large corporations. Which only represent probably 400/. of the output. There hasn't been a lot of compliance with 939 mandates by smaller corporations. Consolidated, has said, right now up to a point that they have done a very good job of educating small commercial accounts and getting them to identify those things that can be recycled. The problem is this that the consumer homeowner as a whole is actually, over the last couplet of years, if I'm not mistaken, subsidizing,in part, small commercial accounts because they are not recycling. What I see is a chance for commercial accounts to begin thinking of it as a cost factor which it should be. It should be a cost of doing business. Your homeowners are expected to look at their trash and separate it and take care not to put recycables into the garbage, and it is only fair to say, "Look, if you are a commerciaraccount and after all this education you still are not cutting down the waste stream by recycling, it is going to cost you." And, I don't see anything wrong with doing that. TAYLOR: OK. I'd like to ask a question again..."The contractor agrees that there will be no increase in the collection cost component for residential customers effective prior to August 1, 1997". Now, the next sentence..."Except for the rate freeze on the collection cost component for residential customers,". Again, there's a magic word missing here, commercial or business...."the following rate adjustment formula shall apply: Contractor shall be entitled CC 6-25-96 Page #8 0 • 0 to rate adjustments, effective on the anniversary date of the franchise (August 11 based upon the following formula..." What happens to the businesses on August 1st? Where is it in here? TELESIO: Actually, as you've spoken, it brings to mind ...I'd like to address a couple of the items, not the least of which, and it's the easiest one that we can dispense with what appears to be some confusion about whether or not the automated containers will limit the disposal of the green waste, it doesn't. Now, in fact, that was a good observation, and a point well made. For instance on page 2 of the staff report where it says, "That of course, does not include greenwaste and recyclable materials currently collected at curbside". What that is saying that the restriction of just one large can is more than enough, is ample, but does not restrict the greenwaste. So, that's what I think that means. TAYLOR: OK. That's clarified on the greenwaste at this time. TELESIO: But, I think what's important and I think is a very noteworthy concern is the "agreement to agree" situation. And it also relates to your concern about the potential of cost increases to the commercial rate payer. I think if I give you the background on this situation, that also can be something that can be dispelled. It might appear that it's open-ended, but in fact, it's not. All it's meant to do is allow us an opportunity to remain whole. And, let me back up and explain what that means. When we approached our...this proposal we, and it's almost a joint realization between ourselves and with the City. What you will need in order to comply with AB 939 is the MRF services. The issue became what would the specific cost of MRF services be. That's hard to predict because that is influenced by commodities markets and all these other things. We can give you a basic range of what we think the tipping fees would be. Right now, for instance if we were to immediately start MRFing, probably it would be in the range of $35 to $45 per ton. Anywhere in that range. And, that will contrast tremendously with the much lower disposal fee that we experienced with the Puente Hills Landfill at $18 or so. BRUESCH: Point of information. Is it not true that those rates have not gone up for the last few years?. - TELESIO: The disposal fees for the landfill? 'I think it's been three years. Therefore, the concern was if we attempt to establish a formula now, we either potentially harm ourselves or you could potentially be exposed. In other words, you can't predict an accurate rate. So all this "Agreement to Agree" is basically... specifically what it is regarding is that cost items are currently unknown. And more specifically what that means when we find out what that MRF fee will be and there is going to be a whole exercise by which we determine, the best MRF to the lowest cost. We're going to do that along with the City. Remember, you approve the final decision. You are the final decider. Once we've done that to your satisfaction, unless we know that specific MRF number will be when we plug it into the overall rate. An also specific concern that I was talking about, was this percentage thing that seems confusing to the disproportionate cost factor you were talking about. I can elaborate on that for just a moment. I'll give you a real simple example. Let's assume that we have a rate of $100 a month to take away a bin from a hypothetical business. Let's assume that about 25% or $25 of that $100 is in the tipping of the weight scales, the other $75 is for collection cost. For all intents and purposes, we're not going to see a huge change in that collection cost. It might go up a small percentage, but, let's even go as far as to say that it's going to be a static number„stay at $75. But let's say then that we begin taking the waste to a MRF and rather than $25 extra, it that shoots up to $75, you,no longer have the 25-75 percentage distribution, that's not anymore. It's now 50150. And, that what we're referring to when we say that we need to establish at a future time what this formula will be. The only thing we are leaving undefined at this moment is what the exact percentage will be because either it will unnecessarily expose you or unnecessarily expose us . All we're seeking is a dollar for dollar. It's not a marked up item. We're just going to stop taking it to the landfill and begin taking it to a MRF: The only thing at that point we seek is the ability to reimburse and this would give us that flexibility. But, again, what's important, you're the ultimate decider. You say your formula doesn't work, it has not been negotiated properly, we renegotiate, we'll do it to your satisfaction. CC 6-25-96 Page #9 BRUESCH: Madam Mayor. Two quick question about this. Number one, when MRF kicks in will there be a need for curbside recycling? E. VASQUEZ: Most likely. BRUESCH: Most likely. So that will continue. O.K. And the other question is in terms of what I said about cost of business. If a commercial business were to establish a very effective recycling program in that they cut down their bin use by half, would there be a way to reward them, or is everybody going to get it whether they do it or not? E. VASQUEZ: What we've got in other cities that they're offered the same service, and if a business is able to subscribe at a reduced rate of their existing trash bill. If they produced a lot of trash and they can cut down a number of bins because they are now putting. in recycling bins. Those are very reduced rates and the MRFing cost would not apply to them. They may be at no rate if there is enough material coming out of that bin. Whatever is left, say they have 5 bins and were able to cut it down to 3, those 3 would be charged for MRFing, the other would be on a different schedule of reduced rates. BRUESCH: What about small commercials that only have one bin and they find that their trash being put out is half of what it was, would there be a chance that they could get every other week, or every other day pick up or whatever. Could they negotiate with you in good . faith since we followed the adaptation. We did what you asked us to do - is there a way to cut cost in my business? We either negotiate a new deal or E. VASQUEZ: Today, we physically do that. We drive from one day to six days. They have four days and cut down to one day, we have to do once a week because that is required by our contract. As for less than once a week, we have not been able to do that. BRUESCH: In other words, they can cut their waste generation in half you would then ...they would get less service and probably cost them less. E. VASQUEZ: That is very possible. J can't say that universally across the board for every person rendered service, but that is possible sometimes. BRUESCH: See, what I'm trying to get at is I think that in this day and age, commercial enterprises have to begin to think of waste budget as a cost of business. And being that it is really a cost of business, I think that it would be apropos to give them a way to cut that cost of business if they do what they say they're going to do. TELESIO: If I may. This isn't meant to be a doomsday report, please. To a large extent, our experience in other cities, in fact, has many times been in effect during the ramp up, the educational program we give that opportunity. In so many cases we have such a meager turnout, we have such small participation. I tend to think it's only because, in many cases, recycling doesn't justify its own cost. Actually, it's more of an effort, it doesn't generate anymore. So the conscientious small business person, there's not an economic incentive. BRUESCH: The knife isn't at the throat. TELESIO: That's a good point. There is an entire garbage disposal with MRFing. In some casesthat's enough motivation for companies to make an effort to do more recycling. In that scenario you're absolutely right. Most likely what they're going to do, they are assertive enough to begin recycling on their own. It would result in less disposal requirements, that would-be MRFing.- TRIPEPI: I think what Mr. Bruesch is looking for is a positive response. What you're telling me is if a business in town now that has 3 1/2 yard bins and they get picked up 4 times a week, they call you and say "Hey look, I'm putting out less trash now. I want it picked up twice a week." Nobody at Consolidated is going to tell them you can't do that, you have to stay on 4 days a week. BRUESCH: The point is that we get a cost of less that 2 pickups. In other words that is a selling point for recycling. CC 6-25-96 _ Page #10 TRIPEPI: If we could, Mr. Taylor, you already brought this item up. I'd like to go to Section 8 of the contract. That is a mistake in the contract, page 6..., the actual Agreement which is proposed to be executed by the Mayor. That needs to be changed because that is a carry over from where customers provided their own trash bins, there will be no charge... the tag time, there will be no charge to the resident of replacement of the 100 gallon container. I just found that at a closer review. TAYLOR: Where are you reading, Frank? TRIPEPI: I'm reading on Section 8. "Any refuse container which will no longer hold refuse without spilling, which leaks or is not water tight shall be replaced by the person from whom refuse is collected'. That is a carry over from the existing contract where they provide their own trash barrels. TAYLOR: Then what is it doing in here, when... TRIPEPI: What we're going to say is any refuse container which no longer holds refuse without spilling which leaks or is not water tight shall be replaced by the Contractor upon notification of the customer within ten days. That takes care of it. No charge to the customer. TAYLOR: The way I read this, once this system... TRIPEPI: Mr. Taylor, you are absolutely right, it does read correct as it is typed. It is a mistake, 1 want to replace Section 8, in answer to your question, by recommending replacement line in Section 8. It shall now read "Any refuse container which will no longer hold refuse without spilling, which leaks or is not water tight shall be replaced by the contractor upon notification by the person from whom the refuse is collected, within ten (10) days of the contractor being notified". That will be that new section. Please, if you will. CLARK: At the expense of the contreetor. TRIPEPI: At no expense to the customer. KRESS: That's right. TAYLOR: All right... I've got it marked here someplace, that after this systems begins, no other containers will be picked up except the automated containers. Where is that Section at? I know it's here... boxes, plastic bags, nothing else will be permitted. So what good does it do to have other refuse containers that will not be picked up because they can't be handled in the automated system. Is that correct? KRESS: I understand the confusion. The reason I left that in is because the automated system is going to be phased in. It's not going to start tomorrow. - TAYLOR: But once it is phased in, no other containers will be picked up. Is that correct? KRESS: Absolutely correct. CLARK: How does _ recycling bins and green waste... KRESS: The recycle bins, the green waste. All the containers at that point will be contractor provided and maintained and replaced. That's correct. - TRIPEPI: At no cost to the customer. BRUESCH: Madam Mayor. That doesn't change the 4 days a year of bulk items that can be left out. TAYLOR: No, that's still in here. CC 6-25-96 Page x11 BRUESCH: In other words, what Councilman Taylor asked is large odd-shaped items, is this going to have to wait for 4 days a year? TRIPEPI: Four times a year. TAYLOR: Right, they still have to do that, Bob. Here's the part, it's got an asterisk on mine, page 5..."Once the automated program is fully implemented, customers must place all refuse in the automated container(s) provided. No trash bags, cardboard boxes, loose debris or waste placed in other non-automated containers will be collected with the exception of appropriately sorted and tagged green waste and disposal items on designated quarterly'bulky item' Citywide collection days". So as far as in other non-automated containers... that was the reason for Section 8 where any refuse containers, that's cleared up. TRIPEPI: Under the old contract. TAYLOR: OK. Then on page 2 of the summary..."In its proposal, COS seeks to implement an automated collection (program by December 1, 1996". So in six months, this program is to be implemented. I would agree that you take all the containers out there and "bingo". it's ready to go. OK, than as of that date, all containers, Section 8 clause is gone. TRIPEPI: Gary, I think there is still confusion. Maybe I didn't explain that right. The reason Section 8 is a carry over from the old...from the existing contract, which doesn't provide 100 gallon barrels, was left in there by mistake. Those 100 gallon containers are going to be replaced by the contractor at his expense. That's all it related to. You're absolutely right, once there is automated pickups throughout the City, everybody must put all their trash in the 100 gallon containers, whether they use 1, 2 or 3 of them. That's what they will be collecting. TAYLOR: We talked about the statement here that's in the actual agreement... "The Recovery Facility'.. -page 3, top paragraph..."The Recovery Facility operations, a separate formula shall be set forth which takes into account the disproportionate disposal costs associated with commercial Materials Recovery Facility serviced accounts". Now go back to page 7, here's the word again. Now it's not just dispmportionatly, it saying "substantial additional disposal costs". "The Commercial recycling program. The Contractor shall undertake the program described in its Waste Services Franchise Renewal Proposal. Prior to the implementation of Phase II - Material Recovery Facility, the Contractor and City shall negotiate a rate to be paid by commercial accounts"... and this is the "Agreement to Agree". OK, we agree on that, the "Agreement to Agree" has to be implemented somewhere. And it states that this.MRF is where it comes into play. Continuing here, I'll read the whole sentence again..."Prior to implementation of Phase II - Materials Recovery Facility, the Contractor and the City shall negotiate a rate to be paid by commercial accounts that will reimburse the Contractor for the substantial additional disposal costs associated with the Materials Recovery Facility. An implementation plan and initial rate schedule for commercial accounts with Materials Recovery Facility service shall be subject to the City Council's review and approval. Upon adoption of the initial rate schedule, a separate rate adjustment formula shall be set forth which taken into account the disproportionate disposal costs associated with commercial Materials Recovery Facility". We know it's coming. If you got in some other cities, how are we going to let these businessmen know that they will get substantial additional costs? I see it coming, and it's in here. TELESIO: There will be an educational program. TAYLOR: Yes, but we're locked into a contract and they're locked into a contract. TELESIO: No sir, you see I don't want there to be any misgivings. It's only our intention to provide the services you need. And, I'm only intending to do it to the extent required economically speaking, to the extent required that we will be reimbursed. TAYLOR: I don't disagree with that. But, let's tell them up front what the cost is before we give you, basically, a five-year extension. CC 6-25-96 Page #12 BRUESCH: Madam Mayor. That is exactly what I suggested you do in your educational material. Gary, what I'm trying to get across is now it has to be considered and factored in as a cost of doing business, not just set cost thing. It going to be a cost to businesses for the amount of waste you generate. I think part of the plan, the greatest part of your educational program is going to be emphasizing to the businessmen and small commercial, "Hey, if you're going to be generating x amount of waste, it's going to cost you an X amount of dollars. We're not sure exactly how much it is, but the less amount of waste you generate, the lower your rates are going to be. TELESIO: That's the thing of the educational program. The first phase is interactive with the business community. And we do spend time ...we make a distinct effort to assist people to begin recycling for the purpose of avoiding the cost. You see, we have to remember we're all in this together. We're almost, you know, immediately being victimized, if we're shot as the messenger. This is, first of all, mandated, that started with the State of California. They said you need to recycle certain percentages, whether or not it makes economic sense. Whether or not it's going to cost more, you have to do it. Here we all are, stuck in the middle. So, it's just a matter of how effectively we can communicate this reality. That's what we've begun to specialize in, we've got an educational program that is more than just literature, it's interactive, we have our people in the field. We really engaged in people, and to a certain extent, as I said earlier, sometimes we don't have the turnout we'd like to see, but in many cases we do receive a good response, we have people that do recycle and allows them to avoid some of that additional cost which is inevitable. The cost of businesses, the fact of having to take the waste to the MRF. BRUESCH: Madam Mayor. If you're totally aware that your Grant is gone and maybe set up a program in major cities where commercial enterprises that are highly fined, that includes recyclers, high fines and large numbers of dollars. IMPERIAL: Madam Mayor. I think we've beaten this thing to death. There is no doubt in my mind as to the integrity of this man. We've dealt with him right now. I have to go back and think about what we had 22 years of in-this City, and I wonder if we've forgotten when we're -well off. I look at this contract, I don't see anything. Maybe I'm...what I'm seeing in reality is we've dealt with the man here, it shows a good image. He's been honest with us, he's tried to work with us right along. I have no doubt in my mind that if something comes up, he would work it out. COUNCILMAN VASQUEZ: Madam Mayor. I have one question, but before I ask my question I'd just like to make a comment that Gary has some good questions and I think he deserves some answers. A lot of answers given to Gary were questions that I had. My question is in past experience with other cities, when you implement this plan, I was thinking every year after Christmas, what happens, that's when everyone brings out more than enough trash to fill 100 gallons. What do you do? They will complain to the Council that they didn't pick up all my trash. What happens during that time. TELESIO: We've demonstrated an extreme flexibility in fact, not that I would want this to occur here necessarily, but we've even extended . During the transition period _ when customers are converting from their existing cans... the capacity they have now is 2 or 3 small cans, will be exceeded by the large ones,.the capacity is larger. But let say the idea of conversion, they're used to de-containerizing, they put out in bags. Sometimes we establish a transition period of 3 to 6 months, during which we pick-up everything., Remember now that's detrimental to the whole motivation of this program. This creates a uniform appearance in your neighborhood. I promise you this, I'm standing in front of you making a promise. Once this program is in place for about 6 months to a year, you'll not even fathom that those containers would ever disappear. You won't even be able to remember what the community looked like without all those containers. It's beautiful. It's nice and uniform, it's clean, you don't see bags strewn all over the curbs. It will be a nice appearance. You'll begin to not only welcome it, you'll appreciate it, you won't want it to ever leave. That's the experience that we've had. What happens during this time? We're very flexible. We work with people. We've extended these transition periods for years. People say I can't get used to 2 and we have to keep doing this. We've worked with our Councils, like Hawaiian Gardens, we've a transition period in place for a year. CC 6-25-96 Page R t 3 J. VASQUEZ: 1 know, every year after Christmas, the lawns are just... TELESIO: Trust me. It's important for us and the citizenry as well to be pleased, we work as a team. E. VASQUEZ: I would like to speak about that because we've had it happen in other cities. What we find is that the initial time, people get used to it. They become comfortable with it. People will then decide if they can handle the one container or if they want a second container. Very few people will need a second container. Most people want it for the convenience and they order it strictly for the convenience. They only use it three times a year, they just want to have it. So, most people's needs will be met. Also, because you have the recycling program, people will actually be motivated to put more into their recycling cans and green waste cans to leave more for their waste. Your recycling will probably go up. Makes people more aware and conscientious that it's a whole nice integrated management program, whereas the more they put in the blue bin and the green bin, the more space in my trash and after a while people find a little niche how much to put out where and if they get _ a second container, they will order one. You don't use it every week, they use it whenever they need it. We haven't had a problem. J. VASQUEZ: Thank you, Enrique. BRUESCH: I agree with Councilman Taylor and Mayor Pro Tem Imperial. We've discussed this. What this is leading up to is the fact we have no place to be putting our trash. Right now you can see the sanitary landfill's capacity at anywhere from 7 years to 20 years or 21 years. This is what they are telling us, but all that can change tomorrow. That all could change with a single lawsuit being adjudicated in court. And then all of a sudden, we're down to 4 years or 3 years or 2 years and what we have to do is look at the amounts that we are putting in and basically cut it in half. That's what 939 says and we cut it to the bone. CLARK: 1 just want to say something. I think it is very important for the audience and residents to understand that this is 3 mandate from the State. We did not ask for it, we fought it, but it is there and by the year 2000 we have to cut our garbage, our refuse by 500A and we will get penalties if we don't, and the penalties are going to be far more than we are going to be paying or discussing tonight. The other thing that is important to remember, I agree with Mr. Telesio that the other communities where I have seen these cans, they're orderly. Sometimes I go around on trash days and it's terrible, people put bags out there, they don't even use their cans. I think in the long run, it's going to benefit us a lot, and also the contractor has agreed that if we don't meet the requirements he will pay 90% of it, and that's a very nice thing to have because we don't want that to hit us. TAYLOR: Madam Mayor. You mentioned the bags that are put out. I saw probably 10 or 12 bags at a particular house today with grass trimmings, leaves and raking up. How are those going to be put out in the future where they will be picked up. CLARK: In the blue container, we're still going to have the blue green waste container. TAYLOR: No, the green waste where it's... CLARK: It's blue, a blue can for green waste. My can is blue, my dark blue is the recyclable. Are you going to change the color? _ VOICE: No, you are right. TAYLOR: I saw 10 to 15 bags today that were not in the blue container. CLARK: Did they have some in the blue container? TAYLOR: I just noticed the bags that were out with leaves and grass in them. CC 6-25-96 Page A14 • • • • E. VASQUEZ: If they're put out with the green waste container, those are picked up in a different truck. They will be picked up as green waste. TAYLOR: So all of that is picked up. E. VASQUEZ: What is meant by the other materials put out as trash is an automated truck, there won't be a trash truck other than the automated truck in the City. They must use the automated containers. There will be a green waste truck to pick up the green waste the way it still is today and put out with the green waste. CLARK: I have a question. Will there be any further separation of recyclables, such as card board and light paper. Are you going to, with the MRF, when the MRF comes in are you going to have people do anymore separation than we do now? E. VASQUEZ: No, we're going to have cardboard as an additional item. The residents can add cardboard and the MRFing won't affect anything. There is nothing that anybody else has to do. We're going to add cardboard, again, if they take advantage of the containers that we have to encourage more recycling. And, the cardboard could be making sure all the green waste is in the green waste container and they can add additional materials to that as long as it is with the green waste, and it is green waste. IMPERIAL: I've got a Motion on the floor, and I'm almost ready to forget what it is. TAYLOR: Madam Mayor. You didn't get a second, but there's two more items - 9 and 10. They shouldn't even be in here as Mr. Rauth mentioned a while ago, they won't apply. As an example, number 10, "Residents electing to use large capacity container..." They're not going to elect anything, we're going to do it. This is mandatory. Once it starts, you use the containers, period. I have no objection, but the contract... KRESS: Large capacity containers refers to bins, if you read the first line of number 9. TAYLOR: OK. "The Contractor shall provide large capacity containers (bins)...", I put up here not the automated plastic, ok. KRESS: This is from the existing contract. TAYLOR: That's correct. If they chose to have the large capacity bins, this clarifies it..."for mechanical loading wherever customers so request their use, and the use thereof shall be in accordance with the rates established herein. Each container provided shall have the Contractor's name, or company name, placed and maintained on one or more locations on the outside in letters not less than three (3) inches in height. The Contractor shall regularly inspect all large capacity containers, repair or replace any damaged containers and maintain an inventory. All such containers shall be maintained by Contractor so as not to leak". This is the large bin, not the automated. That's understood. CLARK: This is commercial bins, what is the problem? TAYLOR: Go to the next one, number 10..."Residents not commercial businesses electing to use large capacity containers for mechanical loading shall use such containers _ exclusively.,." KRESS: What that means is multi-families collection points - on bin service. - TAYLOR: Multiple residents? TRIPEPI: Multiple dwelling... instead of using the barrels, buy a bin. TAYLOR: This is multiple residents. OK. The biggest loophole that remains is what is the cost that is going to be charged, and incidentally, I've worked for private contractors and businesses all my life, I know the ones that salvaged the steel, they salvage the aluminum, they salvage the brass from the different companies. The market salvages the cardboard, they know what recycling is. They're in the business of making money off of whatever they CC 6-25-96 Page #15 I % i• •i can resell. They do know. But, there's a hidden trap in here and the businessmen are going to let us know. 1 don't doubt that at all. TELESIO: There's not a hidden trap in here. TAYLOR: There's going to be substantial added costs that's written right in the agreement. TELESIO: That's a There's not a hidden trap. TAYLOR: Well, indirectly, obscure stumbling block. When those costs come in, we'll see how they do. And, Madam Mayor, I'd like this conversation in the Minutes verbatim with the promises and guarantees that we got. BRUESCH: Madam Mayor. At this time 1'd like to second the Motion Mayor Pro Tem Imperial's and call for the question. - JUAN NUNEZ: I had a question. CLARK: Juan had a request to speak. Please make it brief. JUAN NUNEZ: I don't know whether I'll make it brief. You have opened up a lot of questions, that I heard so much more discussed. I was going to ask about the rates and I spoke to the representative of Consolidated. They said that the rates for residential rates are not going to be raised. According to what Gary was reading, you have this information, I don't have anything and I don't know anybody in the audience that has this information. IMPERIAL: So, what is your point? TRIPEPI: In all fairness to everybody, you come into City Hall every day, all week long, all you have to do is ask for it when you're here. NUNEZ: Yes, l know. _ TRIPEPI: But you did not. You wanted to ask tonight, so you got that. You and Gary, that's what the bottom line is. NUNEZ: We don't have this information to read on it. As Gary is saying that the rates will be going up in August '97. TAYLOR: Residential, that's the way I read it. But, commercial can go up August 1 st this year, the way I read it. NUNEZ: OK. Another thing is that on the five-year contract, you're going to be locked in like you were or the other Councils were locked into 30 to 35 year with Modern.. TAYLOR: Every year they get a renewal for five-years, perpetually. NUNEZ: One year is another five years. Two years is another year and they have 7 years, if they have 3 years, they another 7 or 8 years. It's going to be locked in like Modern was for 30 to 35 years, . IMPERIAL: I take offense to the tact that you're equating this contract with that we had with Modern. If sugar is sweet, that was a sweetheart, that contract. Neither I nor Gary or anybody else had anything to do with that contract, we inherited it. We've learned a lot from it, ok. &,,,y~UNEZ: As Council, you can protest as much as you want. But, it seems to me that you're going to be locked into something like that. CC 6-25-96 Page #16